US Government Plans Privatization of Fannie Mae, Freddie Mac

The Trump administration is reportedly considering an executive order to privatize Fannie Mae and Freddie Mac, with Federal Housing Finance Agency Director William Pulte initiating significant leadership changes at both entities. Pulte has ousted over a dozen board members and appointed himself as chairman, a move that has raised questions about the future direction of the mortgage giants. Treasury Secretary Scott Bessent has indicated that any privatization efforts must take into account the potential impact on mortgage rates. A proposal has emerged suggesting the transfer of Treasury's ownership of these companies to a sovereign wealth fund, aligning with Trump's broader fiscal goals. The privatization of Fannie and Freddie is viewed by some as a potential method to reduce the federal deficit and return funds to taxpayers. As the discussion evolves, the stock performance of both companies has drawn increased interest from retail investors, with significant gains year-to-date.