Fannie and Freddie won't be privatized, instead government shares sold for cash windfall.

From Investing.com: 2025-05-29 01:07:00

FHFA director Bill Pulte clarified that Fannie and Freddie won’t be privatized, just taken public. Selling government preferred shares for immediate cash windfall, not privatization. Optics more favorable, less risky. Pulte states that selling off shares won’t significantly impact American housing market. Fannie and Freddie finances have had dramatic optics for decades, equity should have remained in public markets. Recapitalization in 2008 without taxpayer cash. Pulte suggests keeping all cash flows on GSE books to avoid insolvency drama. No need for private shareholders, mostly optics. Federal government currently more intrusive in private lending market. Pulte implies government will continue as guarantor, selling preferred shares won’t change much.



Read more at Investing.com: The Real Impact of Fannie and Freddie’s Government Share Sell-Off