Executive order reportedly under review as FHFA pushes through major leadership changes
Major leadership changes at Fannie Mae and Freddie Mac are raising questions about what’s next for the mortgage giants — and whether the Trump administration is preparing to move forward with privatization.
In just his first full week as director of the Federal Housing Finance Agency (FHFA), William Pulte removed more than a dozen board members at Fannie and Freddie, named himself chairman of both boards, and pushed out several senior executives, including Freddie Mac CEO Diana Reid.
One of the new appointees, Christopher Stanley, a known ally of Elon Musk, resigned just one day after being named to the board.
“There are some really great people inside of these businesses, and the good news for them is there is a lot of upward mobility, to earn and grow MORE!” Pulte wrote on X (formerly Twitter) one day before the changes were made.
The agency has declined to comment further on the internal changes, but according to the Wall Street Journal, dozens of agency staff have been placed on administrative leave.
At the same time, the Trump administration is reportedly considering an executive order that could prompt federal departments to explore ways to privatize the two government-sponsored enterprises, the Journal reported, citing a source familiar with the discussions.
Treasury Secretary Scott Bessent and Pulte have said any push toward privatization would need to take mortgage rates into account.
Read more: Privatizing FannieMae, Freddie Mac could wait - new FHFA director
But the idea is gaining momentum in political and financial circles, especially after Bessent suggested on a podcast that the government’s stakes in Fannie and Freddie could eventually be included in a proposed US sovereign wealth fund.
That comment quickly fueled speculation. Hedge fund manager Bill Ackman, a longtime supporter of re-privatizing Fannie and Freddie, said on social media that the idea has potential, as long as it respects existing shareholder claims.
Stifel Financial CEO Ronald Kruszewski argued in the Financial Times that folding the government’s stakes into a wealth fund could “bolster the financial stability of the nation” and possibly lead to a $1 trillion fund by 2040.
Mortgage bond strategists at JPMorgan Chase also weighed in, urging investors to take the discussion seriously — though cautiously.
Fannie Mae and Freddie Mac were created by Congress to expand access to home financing, and although Fannie was privatized in 1968, both entities remained closely tied to Washington. During the 2008 financial crisis, the government spent nearly $190 billion to stabilize them, putting them under conservatorship.
The White House has not confirmed any formal decision on the executive order but emphasized in a statement to the Journal that President Trump’s economic agenda, which includes tariffs and deregulation, has already led to “trillions in investment commitments” and thousands of new jobs.
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