Washington/New York US President Donald Trumps administration could kick off initial public offerings IPOs of Fannie Mae and Freddie Mac later this year, according to a senior administration official, marking a milestone for the mortgage finance giants that have been under government control for years.
The share sales could value Fannie and Freddie at nearly 500bn combined, the official said, speaking on the condition of anonymity.
The deal would be an important turning point for the companies, which have been under federal conservatorship since 2008. The administration has been talking to banks about the potential share sale but has not formally appointed one to lead the process, a source familiar with the matter said.
Fannie and Freddie were created by Congress to support the housing market by ensuring affordable mortgage financing but crumbled after being severely bruised during the financial crisis.
They were bailed out with taxpayer funds, and the treasury department received preferred shares in return, which paid billions of dollars in dividends over the years.