Trump Says US Still Weighing Share Sale for Fannie, Freddie

President Donald Trump said his administration is still considering public offerings of shares of 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.

Speaking to reporters aboard Air Force One on Friday, Trump was asked whether the long-rumored sale of Fannie and Freddie shares was off the table when Federal Housing Finance Agency Director Bill Pulte was selected to serve as acting director of national intelligence on an interim basis.

“No, it’s not,” he said of the proposed proposal for the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. “For this reason, we are considering an IPO. We are in no rush.”

Trump has dithered over how to deal with mortgage giants throughout his term, inviting overtures from banks last year. The administration had previously signaled it was close to a decision but has so far refused to move forward.

Fannie and Freddie have been under Washington’s control since the 2008 financial crisis. Shares rose in August following news that the White House had plans for an initial public offering that could value the companies at about $500 billion or more and would involve selling 5% to 15% of its shares to raise about $30 billion.

But since then the outlook has gotten darker. Shares have fallen more than 30% this year as investors remain skeptical of management’s plans. Some analysts think the stock sale could cause mortgage rates to rise, which could undermine efforts to make the market more affordable.

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