August 11, 2025
The National News Desk recently published an article featuring Keith Munsell, Master Lecturer of Strategy and Innovation, on the Trump administration’s consideration of taking Fannie Mae and Freddie Mac public through a partial stock sale that could raise up to $30 billion, potentially the largest IPO in history.
The two mortgage giants have been under federal conservatorship since the 2008 financial crisis, despite repeated attempts to privatize them. Supporters say privatization would return Fannie and Freddie to the private sector, generate revenue for the government, and reduce taxpayer risk. Critics argue it could forfeit billions in annual taxpayer profits and restrict access to affordable mortgages, undermining their public mission.
“There are good arguments both for and against privatization, and like any argument it depends on one’s perspective. Is a role of government to encourage homeownership or should we leave that to the private sector?” Munsell noted.
Trump has pledged to maintain the government’s implicit guarantee to stabilize the mortgage market, but analysts caution that removing federal backing could raise mortgage rates and worsen affordability challenges.
