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Trump: Government Would Retain Fannie Mae, Freddie Mac Guarantees Amid Push to Take Public

  • President Donald Trump announced plans in May 2025 to privatize Fannie Mae and Freddie Mac while retaining government guarantees.
  • This proposal follows 17 years of government control after the 2008 financial crisis bailout that cost taxpayers $187 billion.
  • Fannie Mae and Freddie Mac currently hold about half of all US mortgages and generate significant revenue but could face a complex privatization process.
  • Mortgage rates are near 6.5%, and experts warn privatization might raise rates between 0.5% and 1% due to increased investor risk, though Trump pledges to maintain implicit government support.
  • The administration’s renewed interest suggests a potential $300 billion government windfall but the plan faces multiagency hurdles and economic concerns about higher housing costs.
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  • 77% of the sources are Center
77% Center
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Newsweek broke the news in United States on Friday, May 23, 2025.
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