After a turbulent first year of President Trump's return to the White House, 2026 could bring something singularly disruptive in the housing and mortgage markets: a partial sale of Fannie Mae and Freddie Mac, the government-controlled mortgage giants that underpin roughly 70% of U.S. home loans. The idea, promoted by Federal Housing Finance Agency (FHFA) Director Bill Pulte and Trump himself, has alarmed critics, who warn that unwinding the 17-year federal conservatorship of the two firms could rattle financial markets.
Pulte has gained notoriety in recent months for leading the crusade against several Trump political enemies including; Federal Reserve governor Lisa Cook, Sen. Adam Schiff (D-CA) and New York Attorney General Letitia James publicly accusing them of mortgage fraud. To date, only James has been criminally charged, and even the strength of that case has been called into question by legal analysts.