Federal National Mortgage Association (Fannie Mae) News Update

Trump Considers Public Offering for Fannie Mae and Freddie Mac

In a recent development, former President Donald Trump has expressed serious consideration of making Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) public entities. This announcement, made on May 21, 2025, has sparked widespread speculation, particularly regarding its potential alignment with Project 2025, a conservative policy blueprint. Trump mentioned consulting with key figures such as Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick, and the Director of the Federal Housing Finance Agency, William Pulte, before making a decision. The move has been met with interest due to the significant role these entities play in the U.S. housing finance system.

Fannie Mae Announces Non-Performing Loan Sale Winners

On the same day, Fannie Mae announced the winners of its twenty-sixth non-performing loan sale. The sale, which included 1,077 deeply delinquent loans totaling $193 million in unpaid principal balance, was divided into two pools. Residential Credit Opportunities IX, LLC won Pool 1, while VRMTG ACQ, LLC (VWH Capital Management, LP) secured Pool 2. The transaction, advised by BofA Securities, Inc., is expected to close on July 8, 2025. This sale is part of Fannie Mae’s ongoing efforts to manage and mitigate risks associated with non-performing loans.

Home Sales Forecast Upgraded

Fannie Mae’s Economic and Strategic Research (ESR) Group has upgraded its home sales forecast for 2025. The group now expects total single-family home sales to reach 4.92 million units, with existing home sales accounting for 4.24 million of those units. This revision is partly due to lower-than-expected mortgage rates, forecasted to end 2025 and 2026 at 6.1% and 5.8%, respectively. Additionally, the outlook projects real GDP growth of 0.7% in 2025 and 2.0% in 2026. These projections reflect a positive outlook for the housing market, influenced by favorable economic conditions.

PIMCO Warns Against Rapid Privatization of Fannie Mae and Freddie Mac

PIMCO, an investment management firm, has expressed concerns over the potential rapid privatization of Fannie Mae and Freddie Mac. The firm warns that such a move could pose significant risks to the U.S. mortgage market and taxpayers. PIMCO emphasizes the need for explicit state guarantees if privatization proceeds, highlighting the importance of careful consideration and planning to avoid adverse impacts on the housing finance system.

These developments underscore the ongoing discussions and strategic decisions surrounding Fannie Mae and Freddie Mac, reflecting their critical role in the U.S. financial landscape.