Fannie Mae and Freddie Mac Stock Sale?

William Pulte, Director of the Federal Housing Finance Agency, said in an interview with Fox Business that the U.S. government was looking to sell around 5% of Fannie Mae and Freddie Mac. 

The mortgage companies have been in conservatorship since suffering large losses in the 2008 mortgage crisis. It’s been estimated that the two government-sponsored entities (GSEs) stand behind more than 60% of the mortgage market.  

“We’re in no rush. The president holds all the cards, so he’ll decide what to do and when to do it,” Pulte commented.  “I think we’re looking at about 5%, and I think it will be very oversubscribed.”  
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The idea of selling part of the mortgage companies has been around for a while but has met with pushback from Congress.  There are issues of whether the companies would have an explicit government guarantee, whether they would remain in conservatorship once stock in sold to the public and whether mortgage rates might increase.