Stress tests show that, even under scenarios considerably worse that the 2008 financial crisis, Fannie Mae and Freddie Mac would likely remain profitable and continue to support the mortgage market.
Pulte suggests no end to conservatorship, but that doesn’t stop the debate about how an exit would work and what the government should do with its windfall.
Republicans may hope to use any windfall the government gets from selling its stake in the GSEs to offset revenue cuts in their “Big Beautiful Bill,” but housing advocates have other ideas.
In post on X, FHFA Director Bill Pulte nudged the Federal Reserve chair to hike rates: “Jerome Powell cut rates right before the election at ‘higher’ levels of inflation. Why won’t he cut now?”
President Trump said he’s seriously considering letting Fannie Mae and Freddie Mac go public. Industry participants are now waiting for specific details.