President Donald Trump said his administration is still considering a public offering of shares in mortgage giants Fannie Mae and Freddie Mac, days after he said he was appointing his top housing official to oversee the government’s network of intelligence agencies.Â
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Trump, speaking to reporters on Air Force One on Friday, was asked if the long-simmering question of an sale of shares for Fannie and Freddie was off the table with Federal Housing Finance Agency Director Bill Pulte picked to serve temporarily as acting director of national intelligence.Â
“No, it’s not,” he said of the proposed offering for Federal National Mortgage Association and Federal Home Loan Mortgage Corp. “We’re thinking about an IPO for that. It’s not a rush.”
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Trump has wavered throughout his term on how to handle the mortgage giants, inviting pitches by banks last year. The administration previously signaled it was close to a decision but has declined so far to proceed.Â
Fannie and Freddie have been under Washington’s control since the 2008 financial crisis. In August, shares surged following reports that the White House had plans for an initial public offering that could value the enterprises at around $500 billion or more, and would involve selling 5% to 15% of their stock to raise about $30 billion.
Since then, however, the outlook has gotten murkier. The shares have tumbled more than 30% this year as investors cast doubt on the administration’s plans. Some analysts think a share sale could even cause mortgage rates to rise, undermining efforts to make the market more affordable.
