### Privatization of Fannie and Freddie Appears to Be Gaining Momentum
New reports suggest that the White House is considering privatizing Fannie Mae and Freddie Mac. While a similar initiative during the previous Trump administration did not materialize, **The Wall Street Journal** has reported that the President is contemplating an executive order directing housing-related departments to study the potential privatization of these government-sponsored enterprises (GSEs).
One proposed approach to privatization involves incorporating Fannie Mae and Freddie Mac into a U.S. sovereign wealth fund. Treasury Secretary Scott Bessent recently addressed this possibility on a podcast, stating, **”Government has a big stake in Fannie Mae and Freddie Mac … where does that go?”** when discussing the potential wealth fund structure.
Investor optimism around privatization has driven a surge in stock prices for both Fannie and Freddie, with shares rising more than 350% since the election, according to **Yahoo Finance**. Speculation has intensified following recent changes at the Federal Housing Finance Agency (FHFA), where William Pulte, the agency’s new director, has reshaped the boards of both GSEs. Pulte has appointed himself as chairman and notably removed Freddie Mac CEO Diana Reid.
These developments suggest that momentum is building around efforts to transition Fannie Mae and Freddie Mac back into private ownership, though the extent and timeline of these actions remain unclear.
