Billionaire investor Bill Ackman, a supporter of Trump, believes that if Fannie and Freddie emerge from conservatorship, it will generate over $300 billion in profits for the federal government.
Privatization would be a significant milestone for Fannie and Freddie, created to enhance the liquidity of the secondary mortgage market while ensuring homebuyers have access to loans.
While privatization may lead to windfall profits for shareholders like Ackman, experts warn it could also result in increased mortgage rates, exacerbating affordability issues in the housing market.
The move towards privatization comes after a failed attempt during Trump's first term, with calls from allies urging for quick action once he assumes office again.
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