Fannie Mae and Freddie Mac May Go Public Again—What That Actually Means

On May 28, 2025, shares of Fannie Mae and Freddie Mac experienced significant gains following President Donald Trump’s announcement of plans to take these mortgage finance giants public.

These institutions have been under federal conservatorship since the 2008 financial crisis. President Trump’s proposal aims to end this long-standing control, transitioning the firms back to private ownership.

You may be asking, “But wait, are these private institutions or government institutions?” Here’s a little bit of the recent history to, hopefully, answer that question!

Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored enterprises (GSEs)—not fully private companies, but also not government agencies.

Were they private before 2008?

Yes, Fannie Mae and Freddie Mac were private, shareholder-owned companies before 2008, although they had special charters from Congress that gave them certain advantages (like lines of credit from the U.S. Treasury and exemptions from some taxes). These perks made investors believe the government would always back them—what’s called an “implicit guarantee.”

What happened in 2008?

During the 2008 financial crisis, both companies faced massive losses due to the collapsing housing market and were on the brink of failure. To prevent a total collapse of the mortgage market, the federal government placed them under conservatorship through the Federal Housing Finance Agency (FHFA). This was not the same as the government taking full ownership, but it meant:

• Their boards and executives were replaced.
• The U.S. Treasury injected billions of dollars in capital.
• Their profits were swept to the Treasury, and they could not operate independently.

Are they private companies now?

No, not in practice. While they are still technically publicly traded (their stock is sold over-the-counter), they are effectively controlled by the federal government through the FHFA. Their operations, profits, and strategic decisions have been under government oversight since 2008.

What would “taking them public” mean now?

It would mean ending the conservatorship and returning them to private ownership with full control by shareholders—although some level of government oversight would likely continue due to their size and importance to the housing market.

In short:

• Before 2008: Private but government-chartered.
• Since 2008: Under federal conservatorship, no longer operating as true private companies.
• Now: Potential push to re-privatize them.

What do you think the proposed change would mean to the real estate, title insurance, and title search industries?