Valuation Chaos at Fannie and Freddie Stalls Multifamily Finance Reform
Fannie Mae and Freddie Mac shares jumped as much as 10% Friday morning after President Donald Trump claimed the mortgage giants were worth $1 trillion, then gave back most of those gains. KBW analyst Bose George said his firm’s valuation sits between $200 billion and $250 billion combined. Trump made the remarks Thursday at the White House during an event focused on coal, adding fresh volatility to stocks that have fallen roughly 30% this year.
Bill Pulte’s appointment as acting director of National Intelligence earlier this week—he previously headed the Federal Housing Finance Agency—raised doubts about plans to sell the government’s stake in the two companies. Wedbush analyst Michael Piccolo wrote that the move makes a Treasury share sale unlikely before the 2026 midterm elections, questioning whether Pulte could manage both roles while advancing the regulatory and capital work needed for privatization. Christopher Maloney of BOK Financial said he does not expect the companies to leave conservatorship in his lifetime, citing their complex legal status and potential disruption to the mortgage market.
Optimism about share sales had driven gains in 2025, with August reports of a possible public offering valuing the enterprises at $500 billion or more and raising around $30 billion through a 5% to 15% stock sale. Investor Bill Ackman, who holds large positions in both companies, called them “stupidly cheap” in March. Fannie and Freddie have been under federal control since the 2008 financial crisis, and any move toward privatization would reshape the structure of U.S. housing finance, including the multifamily lending programs that rely on their guarantees.
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