Trump Administration Considers Sale of Fannie and Freddie Stakes

Trump Administration Still Considering Public Offering for Fannie Mae and Freddie Mac

The White House is still weighing a public offering of shares in mortgage giants Fannie Mae and Freddie Mac, despite recent developments that have cast doubt on the administration's plans. President Donald Trump made the announcement on Friday, while speaking to reporters on Air Force One. Trump stated that the proposed offering for the Federal National Mortgage Association and Federal Home Loan Mortgage Corp. is not off the table.

According to reports, the administration had previously signaled that it was close to a decision on the sale of shares in the mortgage giants. However, it has declined to proceed with the sale so far. Fannie and Freddie have been under Washington's control since the 2008 financial crisis.

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In August, shares in Fannie and Freddie surged following reports that the White House had plans for an IPO that would involve selling 5% to 15% of their stock to raise about $30 billion. However, since then, the outlook has gotten murkier. The shares have tumbled more than 30% this year as investors cast doubt on the administration's plans. Some analysts think a share sale could even cause mortgage rates to rise, undermining efforts to make the market more affordable.

Trump has wavered throughout his term on how to handle the mortgage giants, inviting pitches by banks last year. The administration's plans for Fannie and Freddie have been a subject of much speculation and debate, with some arguing that a public offering could help to make the market more affordable, while others believe it could have unintended consequences.