The U.S. President Donald Trump administration is looking to offload about 5% of Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) in a public offering, U.S. Federal Housing Finance Agency Director Bill Pulte said on Tuesday.
The two mortgage giants traded in the green in late morning trading, with Fannie (OTCQB:FNMA) rising 0.7% and Freddie (OTCQB:FMCC) up 2.3%.
Speaking in an interview with Fox Business, Pulte estimated the government's stake in the two government-sponsored enterprises at $500B-$700B.
Trump had met with several chief executives of major banks to hear out their ideas for monetizing Fannie (OTCQB:FNMA) and Freddie (OTCQB:FMCC). But the president's efforts have received pushback from lawmakers on the premise that a share sale could lift mortgage rates.
"We're in no rush. The president holds all the cards, so he'll decide what to do and when to do it," Pulte said in reference to a possible public offering. "I think we're looking at about 5%, and I think it will be very oversubscribed."
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