By John Meyer, consultant in financial affairs – Eurasia Business News, August 8, 2025. Article no. 1694
The Trump administration is preparing to take Fannie Mae and Freddie Mac public later this year through an initial public offering (IPO) that could raise about $30 billion.
The combined valuation of these government-controlled mortgage giants is expected to be roughly $500 billion or more.
Plans involve selling between 5% and 15% of their stock, though it is still undecided whether the two companies will be offered as a single entity or as separate companies.
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Both firms have been under federal conservatorship since the 2008 financial crisis, and the IPO would mark a significant step toward their privatization, although it is unclear if they will remain under government conservatorship afterward.
This initiative is seen as a major move in returning these mortgage finance giants to private ownership, with shares of both companies already experiencing notable increases in value in anticipation.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company.
The U.S. Congress created Fannie Mae in 1938 during the Great Depression to make sure there are funds available for residential mortgage lending nationwide. Fannie Mae do this by purchasing mortgages from U.S. lenders and bundling them into mortgage-backed securities that it sells to investors. Lenders use their replenished cash to offer new mortgages.
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© Copyright 2025 – Eurasia Business News. Article no. 1694
Eurasia Business News 