Privatizing Fannie and Freddie Not a Top Priority, Says Housing Finance Chief

Bill Pulte, who was confirmed by the U.S. Senate to lead the Federal Housing Finance Agency (FHFA) under the Trump administration, said he is in no rush to privatize Fannie Mae and Freddie Mac—the mortgage giants that back more than half of America’s home loans, Samantha Delouya reported for CNN.

Some experts warn that privatizing Fannie and Freddie could disrupt mortgage markets, making it more expensive for Americans to secure home loans. I Photo: Highsmith, Carol M., 1946- Carol M. Highsmith Archive / The Library of Congress

“Fannie and Freddie shouldn’t be in conservatorship forever,” Pulte told CNN.

“But it’s critical to ensure that any discussion about exiting conservatorship not only prioritizes safety and soundness but also considers how it would impact mortgage rates.”

During Trump’s first administration in 2019, an attempt to remove Fannie and Freddie from government conservatorship—where they have remained since the 2008 financial crisis—was unsuccessful.

Many of Trump’s Republican allies have long pushed for privatization, arguing that the conservatorship was always intended to be temporary.

However, America’s housing market is currently grappling with high borrowing costs, a supply shortage, and near-record home prices. Some experts warn that privatizing Fannie and Freddie could disrupt mortgage markets, making it more expensive for Americans to secure home loans.

Although mortgage rates have fallen from recent highs, they remain elevated compared to historical trends. As of last week, the average 30-year fixed mortgage rate stood at 6.65%, according to Freddie Mac.