Bill Ackman Expects Trump To Privatize Fannie Mae And Freddie Mac

Billionaire investor Bill Ackman anticipates that U.S. President-elect Donald Trump will remove Fannie Mae and Freddie Mac from conservatorship, potentially making them private companies again, Reuters reported.

Fannie Mae and Freddie Mac were created by Congress to expand the national home lending market by purchasing home loans from private lenders and repackaging them as mortgage-backed securities. I Photo: National Association of Realtors

Following Ackman's post on the social media platform X, shares of Fannie Mae surged 18.4%, while Freddie Mac's stock rose by 18%.

According to Ackman, the two government-sponsored enterprises (GSEs) could emerge from conservatorship within the next two years, with a possible public listing around 2026.

Fannie Mae and Freddie Mac were created by Congress to expand the national home lending market by purchasing home loans from private lenders and repackaging them as mortgage-backed securities.

After suffering catastrophic losses during the 2008 housing market collapse, both companies were placed under conservatorship by the newly created Federal Housing Finance Agency (FHFA) to prevent a broader economic meltdown.

Ackman, a staunch advocate of Zionism, faced criticism in the past for his controversial remarks. Notably, his push to delist Universal Music Group (UMG) from the Dutch stock exchange backfired after UMG executives rebuffed his demands, citing his lack of a majority stake.