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Federal Housing Finance Agency Director Bill Pulte said Wednesday that any decision regarding potential IPOs for Fannie Mae and Freddie Mac ultimately rests with President Donald Trump.
Speaking with CNBC, Pulte said the administration is focused on ensuring “all options” remain available regarding the future of the government-sponsored mortgage giants.
“One of the things that we are laser-focused on is that he has all the options available to him,” Pulte said when asked about the timing of possible public offerings.
Pulte also pointed to operational changes at both companies, noting efforts to reduce selling, general, and administrative expenses.
“We have done a great job at stripping SG&A out of both Fannie and Freddie,” he said. “These two companies are running like real companies now.”
While speculation around the timing of IPOs continues, Pulte emphasized that the decision remains in the president’s hands.
“I know there are a lot of people who want to see it happen sooner or want to see it happen in a certain way,” he said. “But it is all up to President Trump.”
Pulte also discussed the administration’s housing affordability initiatives, including ongoing discussions with major homebuilders. He indicated that the FHFA is preparing to announce partnerships with several builders to expand affordable housing opportunities.
“The Trump administration is very focused on Fannie and Freddie, and Fannie and Freddie provide a lot of liquidity to these homebuilders,” Pulte said.
He added that builders are positioned to play a significant role in addressing housing shortages nationwide.
“Homebuilders have a real opportunity here,” Pulte said. “They have two million lots that are not being used that they can put on the ground.”
Shares of major homebuilders traded higher on Wednesday afternoon, including D.R. Horton, PulteGroup, Lennar, NVR, and Toll Brothers.
Fannie Mae shares were modestly higher in afternoon trading, while Freddie Mac shares posted stronger gains.
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