• The Trump administration has not finalized a decision on taking Fannie Mae and Freddie Mac public, though planning and speculation continue.
  • Major Wall Street banks are actively lobbying the administration to lead what could be a $30 billion IPO, valuing the GSEs at over $500 billion.
  • The over-the-counter shares of the mortgage giants have surged on speculation, but significant policy and structural hurdles remain.

President Donald Trump has not yet made a final determination on an initial public offering for Fannie Mae and Freddie Mac, according to people familiar with the matter, even as Wall Street’s largest banks aggressively lobby for a role in the historic transaction. The administration is actively reviewing options for the mortgage finance giants, with a potential offering of a 5% to 15% stake on the table for late 2025.

Efforts to restructure the companies' debt and exit their 17-year conservatorship have gained notable momentum in recent months. Multiple bank executives have met with the president to pitch their firms to lead the offering, which could raise roughly $30 billion and value the two entities at a combined figure north of half a trillion dollars, the people said. The intense jockeying underscores the immense fees and prestige tied to what would be one of the largest IPOs in history.

The speculation was fueled significantly by a Trump social media post in May, in which he stated he was "seriously considering" taking the companies public. That comment sent their thinly traded over-the-counter shares soaring. As of mid-August, the administration’s focus appears to be on maximizing the return on the government’s investment, though the ultimate structure, timing, and even the certainty of a public listing remain undecided.

A spokesperson for the White House did not immediately respond to a request for comment. Officials at the Federal Housing Finance Agency, which regulates the companies, have declined to publicly discuss the privatization plans.

The path to an IPO is fraught with complexity. The companies would likely need to be recapitalized with tens of billions of dollars, and Congress would face intense pressure to establish a new regulatory framework to replace the conservatorship. Furthermore, longstanding litigation from shareholders who saw their investments wiped out during the 2008 bailout could present a final obstacle. Some policy experts warn that a rushed privatization could reintroduce systemic risk to the housing market without clear guardrails.

Despite the hurdles, the companies' strong financial performance is a key factor driving the discussion. Both GSEs have been consistently profitable, with Trump himself noting they are "doing very well, throwing off a lot of cash." Their earnings are powered by large mortgage portfolios and a steady stream of fees, making them attractive candidates for a return to private markets, albeit with their government ties likely remaining in some form.

This article was updated to clarify that the potential IPO would involve selling a minority stake in the companies.