### Privatization of Fannie and Freddie Appears to Gain Momentum
Recent reports suggest that the White House is considering efforts to privatize Fannie Mae and Freddie Mac. While a similar initiative during the first Trump administration did not materialize, *The Wall Street Journal* has reported that the President is contemplating issuing an executive order directing housing-related departments to study the privatization of these government-sponsored enterprises (GSEs).
One possible approach to privatization could involve incorporating Fannie Mae and Freddie Mac into a proposed U.S. sovereign wealth fund. Treasury Secretary Scott Bessent addressed this possibility during a recent podcast, stating, “Government has a big stake in Fannie Mae and Freddie Mac … where does that go?” when asked about the sovereign wealth fund.
Investor optimism surrounding privatization has fueled significant stock gains for both GSEs. Since the election, their stock values have surged more than 350%, according to *Yahoo Finance*. The new wave of speculation comes as William Pulte, the recently appointed director of the Federal Housing Finance Agency, restructured the boards of both entities, appointing himself as chairman and removing Freddie Mac CEO Diana Reid.
This latest development signals growing momentum behind the push to move Fannie and Freddie into the private sector, raising questions about the future of the U.S. housing finance system.
