President Trump has announced plans for Fannie Mae and Freddie Mac, the two giant government-backed mortgage financiers, to go public by the end of this year. This potential move, if completed, would mark one of the largest financial events in recent years and could raise as much as $30 billion for the federal government.

Fannie Mae and Freddie Mac have been under government conservatorship since the 2008 financial crisis, playing a central role in providing stability and liquidity to the U.S. housing finance system. They do this by purchasing mortgages from lenders, holding them or packaging them into securities, and guaranteeing these securities against default. This backstop helps keep mortgage rates lower for millions of American homeowners.

The administration’s plan reportedly involves the sale of between 5% and 15% of the companies’ shares. Recent estimates value Fannie Mae and Freddie Mac at a combined amount upwards of $500 billion. However, key details—including whether shares will be sold separately for each company or together, and whether the companies will remain under some level of government oversight—are still under debate.

President Trump has indicated that market conditions are favorable, describing both companies as very profitable and suggesting this is an optimal time for public listing. Top advisors and administration officials have been meeting with major Wall Street firms to weigh the logistics and potential impacts.

Despite the excitement, this move comes with significant uncertainty. Transitioning Fannie Mae and Freddie Mac back to private ownership poses complex questions about their future role, capital requirements, and the broader impact on housing markets and mortgage rates. The stakes are high, and the outcome could shape the U.S. mortgage landscape for years to come.