Billionaire investor Bill Ackman has ignited a major debate over the future of Fannie Mae and Freddie Mac after unveiling a sweeping three-step plan he says could unlock $300 billion for U.S. taxpayers and finally end 17 years of government control.
The proposal comes as the Trump administration pushes for a massive IPO of the mortgage giants as early as late 2025.
Ackman delivered his plan on November 18 in a livestream presentation, arguing that a traditional IPO is “neither feasible nor desirable” at this stage. Instead, he believes the government should relist the existing over-the-counter shares directly onto the New York Stock Exchange.
Under Bill Ackman’s plan, the Treasury would first formally declare that the 2008 bailout has been fully repaid. Fannie Mae and Freddie Mac received about $191 billion during the crisis but have since returned far more through profit sweeps. Ackman says the books should be closed and the senior preferred shares marked as satisfied.
The second step calls for the U.S. government to exercise its long-held 79.9% warrants, turning taxpayers into majority owners of both companies.
That move alone would create an estimated $300 billion equity position for the public once the shares trade on a major exchange.
The final step is an immediate NYSE relisting of Fannie Mae (FNMA) and Freddie Mac (FMCC), avoiding the complexity, political hurdles, and multi-year delays of a Wall Street IPO. Ackman argues the relisting could happen within weeks and drive a combined market value of roughly $400 billion for the two mortgage giants.
Stocks reacted quickly. On November 18, Fannie Mae jumped more than 7%, while Freddie Mac surged over 8% as investors weighed the implications of Ackman’s blueprint. Both stocks have been on a tear throughout 2025 as speculation around the end of conservatorship intensifies.
In a separate presentation, Bill Ackman again pressed the government to delay any IPO, saying it would take “significant time” to gather support, complete regulatory requirements, and satisfy market participants. He stressed that re-listing shares is the cleanest and fastest path for both taxpayers and current investors.
The Trump administration, meanwhile, has been exploring options to take the companies public, including a potential merger, a holding-company structure, or a multibillion-dollar equity sale.
Critics warn that such an IPO could be risky if the government fails to establish long-term guarantees or adequate capital protections.
Ackman maintains that Fannie Mae and Freddie Mac are no longer crisis-era liabilities but strong, profitable institutions. Fannie Mae reported $3.9 billion in Q3 2025 net income and holds a guaranty book exceeding $4 trillion. Together, the two companies back nearly half of all U.S. residential mortgages, representing about $12 trillion in outstanding debt.
For homebuyers, the stakes are high. A smooth, predictable exit from conservatorship could stabilize mortgage rates and ensure strong liquidity in the housing market.
A messy IPO, analysts warn, could increase borrowing costs if investors doubt the structure of the new system.
As of November 19, the battle lines are clear:
Ackman wants a rapid, direct market return that enriches taxpayers and strengthens the mortgage system.
The Trump administration is eyeing a historic IPO with major implications for housing finance.
With both paths now publicly competing, the future of Fannie Mae and Freddie Mac—and billions in taxpayer value—hangs in the balance.