The Trump administration's long-standing effort to end government control over mortgage giants Fannie Mae and Freddie Mac faces renewed doubt following a recent personnel move. President Donald Trump, who failed to privatize the entities during his first term, has now assigned the official overseeing the process, Bill Pult, to also serve as acting Director of National Intelligence—a largely unrelated role.
Pult, whose grandfather founded one of America's largest homebuilders, will continue as director of the Federal Housing Finance Agency, which regulates Fannie and Freddie, while simultaneously leading intelligence agencies including the CIA and NSA. This expansion of his duties suggests the administration may not be prioritizing swift action on the mortgage firms' status, despite Trump hinting last month at a potential IPO for both.
Requests for an updated timeline made this week to the White House, FHFA, Fannie Mae, and Freddie Mac received no response. Susan Wachter, a professor of real estate and finance at the Wharton School, commented to CNN after Pult's new role was announced, stating she had seen steps toward privatization progressing but now believes "those efforts have stalled."
Experts warn that mishandling the exit from government conservatorship could disrupt the mortgage-backed securities market underpinning the U.S. housing finance system, potentially driving borrowing costs higher for homebuyers. This risk is particularly acute with home prices near record highs and mortgage rates elevated amid inflation concerns linked to the Iran conflict.
Wachter added that achieving privatization would require "full-time, around-the-clock" focus. She is not alone in thinking Pult's new responsibilities could sideline the privatization push. Jaret Seberg, a TD Cowen analyst covering financial services and housing policy, wrote in a client note that ending conservatorship is already "operationally and politically difficult," and questioned how those hurdles could be overcome if the FHFA director is spending most of his time on national security matters.
On Thursday, Trump stated Pult had done "a fantastic job with Fannie and Freddie" and described his intelligence role as "not permanent." The path to this point has been complex. Fannie Mae and Freddie Mac do not lend directly to homebuyers but purchase mortgages from banks and package them for investors, providing lenders with stable funding to offer affordable rates.
They were placed into government conservatorship during the 2008 housing crisis to prevent further market damage—an arrangement intended to be temporary. Wachter expressed skepticism that anyone at the time foresaw them remaining under control 18 years later. Proponents of ending conservatorship, including many Republican allies of Trump, argue the companies are capable of operating independently and that an IPO could raise billions for the heavily indebted government.
In August last year, CNN reported Trump met with CEOs of major Wall Street banks, including JPMorgan Chase & Co.'s Jamie Dimon, Goldman Sachs Group Inc's David Solomon, and Bank of America Corp's Brian Moynihan, to discuss a potential IPO. However, Wachter and other experts caution that without a clear government backstop in a future crisis, MBS investors would demand higher returns for increased risk, costs likely passed to borrowers as higher mortgage rates.
Policymakers could retain government support by charging Fannie and Freddie guarantee fees, but Wachter warns this cost could also ultimately be borne by consumers, adding upward pressure to rates. The prospect of privatization has long attracted investors betting on massive gains, with many viewing Trump's return to the White House as a breakthrough opportunity. Few have been more optimistic than billionaire hedge fund manager Bill Ackman of Pershing Square, who posted on X in December that Fannie and Freddie common shares traded over-the-counter remained his "best idea for 2026."
Ackman declined to comment on whether Pult's new role alters his outlook. Year-to-date, both stocks have fallen approximately 40%, declining further this week on news of Pult's appointment. On a Reddit forum for Fannie and Freddie investors, some expressed frustration. One post this week stated, "I hate to say it, but Trump has moved on from Fannie and Freddie." Another read, "I regret not selling when the stock spiked about a year ago just to make a quick buck."