Trump Says Fannie Mae and Freddie Mac Would Retain Government Guarantees in Public Offering

by MLS Nation Realty

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Donald Trump struck a trade deal with the U.K, which will have minor implications for the U.S. housing market

President Donald Trump appears to be pushing forward with a plan to list government-backed mortgage giants Fannie Mae and Freddie Mac on a major stock exchange, but insists they would retain federal guarantees as a fail-safe.

"I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as president," Trump wrote on his Truth Social network on Tuesday night.

Fannie and Freddie provide stability and liquidity to the U.S. mortgage market by purchasing whole loans from mortgage lenders and packaging them into securities. This guaranteed demand for "conforming" mortgages that meet the entities' standards ensures a ready supply of loans for homebuyers.

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