Trump hints at 5% sale of government stakes in Fannie Mae and Freddie Mac

13 articles · Updated · Barron's · May 7

At a 1 May event, he said the idea came from FHFA Director Bill Pulte; Treasury holds warrants for nearly 80% of common stock and a senior preferred claim above $370bn.
Investors including Michael Burry and Bill Ackman are betting on a restructuring, but shares have fallen about 50% since September and analysts say any move would require extensive groundwork.
Officials say proceeds could help cut the deficit or fund housing, while bond investors warn altering government backing could raise mortgage rates for the 30-year home-loan market.

With the government holding 80% of the stock, is the '10X' dream for investors an illusion?

Could the plan to free Fannie and Freddie end up costing homeowners more on their mortgages?