Reuters: IPOX® VP Kat Liu on Potential Valuation Overhang in Fannie Mae and Freddie Mac IPO Plans

Reuters reported that the Trump administration is considering launching IPOs for mortgage finance giants Fannie Mae and Freddie Mac later this year, potentially valuing the pair at nearly $500 billion combined. The move would mark a major step toward privatizing the companies after more than 15 years under federal conservatorship.

The article notes that while the U.S. mortgage market remains healthy, bringing Fannie and Freddie to the public markets poses unique challenges given their size, role in the housing finance system, and ongoing government involvement. IPOX® Vice President Kat Liu commented on investor sentiment, saying:

"A partial sale this year would almost certainly leave a large overhang. Investors would likely price in expectations of future government sell-downs, which can weigh on valuations unless officials set a clear, staged exit plan."

The Reuters piece also highlighted that any unwinding of the government’s holdings would be complex due to the trillions in mortgages the companies guarantee, and that President Trump has indicated he would retain some oversight role even after a public listing.

Read the full article by Niket Nishant, Manya Saini, and Andrea Shalal on Reuters: https://www.reuters.com/business/trump-administration-eyeing-ipos-fannie-mae-freddie-mac-this-year-us-official-2025-08-08/