Days after the administration confirmed plans to start selling the government's stakes in mortgage giants Fannie Mae and Freddie Mac, President Trump has suggested the possibility of merging them into a single entity that could trade under the ticker symbol MAGA. This proposal has generated significant interest, particularly among Trump's supporters who are eager to see these crucial institutions returned to the public markets.
Fannie Mae and Freddie Mac play a vital role in the U.S. mortgage market. Founded to enhance liquidity and stability in the housing sector, these agencies were placed under conservatorship in 2008 following the financial crisis. The government's intervention was essential to prevent a complete collapse of the mortgage market, which underscores the significance of these institutions in maintaining a stable housing economy.
Nearly two decades after the government’s rescue, there is growing momentum among some of Trump's staunchest supporters to see Fannie Mae and Freddie Mac returned to the public markets. A successful share sale could generate tens of billions of dollars, providing a substantial financial boost to the government. The sale of these stakes represents not just a financial opportunity, but also a potential shift in how the mortgage market operates.
On Friday, a senior administration official confirmed to Axios that the government plans to initiate the process of selling down its stakes later this year. The official indicated that Trump is considering various options for managing the sale, including the possibility of combining Fannie Mae and Freddie Mac into one entity. This approach could streamline operations and potentially attract more investors.
In a surprising twist, Trump took to Truth Social on Saturday afternoon to share what appeared to be an AI-generated image of himself at the New York Stock Exchange, ringing the opening bell. The image featured a date of November 2025 and promoted an entity called The Great American Mortgage Corporation, with the ticker symbol MAGA. This announcement has sparked curiosity about how such a merged entity would be structured, especially since both Fannie and Freddie are currently publicly traded, albeit with limited shares available.
As the government moves forward with its plans, more concrete actions will need to be taken soon if they aim to offer this new entity by November. Investors are keenly observing how this potential merger will be structured and whether it will retain a government backstop, as Trump has hinted it might. The outcome of this initiative could have far-reaching implications for the future of the mortgage market and the financial landscape in the U.S.
