Treasury Secretary Bessent on Fannie Mae and Freddie Mac Ownership: Review Could Wait Until 2027 or 2028, With Mortgage Costs the Priority
U.S. Treasury Secretary Scott Bessent said on October 20, in an interview with the media platform 2WAY, that the Trump administration could wait until 2027 or 2028 to address the ownership structure of Fannie Mae and Freddie Mac, emphasizing that protecting mortgage borrowers from higher financing costs remains a central consideration. Bessent questioned what benefit a change in ownership would bring homeowners and said the administration would seek to prevent the spread between agency mortgage rates and Treasury yields from widening.
The comments set no firm timetable for an initial public offering, a sale of government shares, or an exit from conservatorship; they signal instead that ownership changes remain under consideration, subject to their implications for the mortgage market. Fannie Mae and Freddie Mac have operated under Federal Housing Finance Agency (FHFA) conservatorship since 2008. The two enterprises purchase mortgages from lenders, guarantee mortgage-backed securities, and support liquidity for the 30-year fixed-rate mortgage market, so a restructuring that changes the perceived strength of the government backstop could affect investor demand and mortgage pricing.
Shares of the two enterprises climbed more than 13 percent on Tuesday following Bessent's remarks, according to Barron's. The market reaction reflects investor expectations, not a completed policy action.
Published by GSM · USA (original Chinese edition)
Photo: 房利美（Fannie Mae）总部大楼（资料图）。照片：User:AgnosticPreachersKid 摄，CC BY-SA 3.0，经维基共享资源。 / The Fannie Mae headquarters building (file photo). Photo by User:AgnosticPreachersKid, CC BY-SA 3.0, via Wikimedia Commons.
