President Donald Trump is weighing a dramatic move that could upend the mortgage industry: privatizing Fannie Mae and Freddie Mac. The two government-backed mortgage giants have been under federal control since the 2008 financial meltdown they helped trigger. Now, Trump says he’s “giving very serious consideration” to setting them free.

In a Truth Social post Wednesday night, Trump hinted at a bold plan that would involve coordination with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Federal Housing Finance Agency Director William Pulte. The president said a decision could come soon.

“Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right,” Trump wrote.

Fannie and Freddie currently back more than 60% of all new U.S. mortgages. Created to make housing more affordable, they were ultimately blamed for enabling the subprime loan bubble that detonated the 2008 crash. After the collapse, the government bailed them out to the tune of hundreds of billions and took them into conservatorship, a supposed “temporary” fix that’s now lasted over 15 years.

Privatization could reduce taxpayer exposure to another housing collapse. Hedge fund manager and Trump ally Bill Ackman has said a release from conservatorship could save the government $8 trillion in liabilities and generate $300 billion in profit. But not everyone is sold.

Critics warn it could trigger higher mortgage rates, particularly if lenders lose the comfort of Fannie and Freddie’s implicit government guarantee. Others say raising the estimated $20–30 billion in capital needed to take them private could be difficult without a major overhaul of their business models.

Still, momentum appears to be building. The Trump administration is reportedly drafting an executive order to study the potential impact of privatizing the firms, and leadership changes at Freddie Mac suggest the wheels are already turning. Pulte, who now leads the agency overseeing Freddie, has replaced its CEO and cleared out senior personnel, including the heads of HR, strategy, and operations.

While specific plans remain under wraps, Commerce Secretary Lutnick and Treasury Secretary Bessent have both signaled support for bold reform. Bessent told Bloomberg earlier this year that the biggest concern is whether any move would spike mortgage rates. If rates can be kept steady, he said, privatization could go forward.

Fannie and Freddie have long been a target of conservative reformers. During Trump’s first term, a push to release them from conservatorship stalled amid bureaucratic red tape and the COVID-19 pandemic. Now, with a fully staffed administration and fewer internal roadblocks, Trump appears eager to finally tackle the mortgage giants.

Supporters of the move argue that leaving the two firms in federal hands indefinitely creates a ticking time bomb. “We give [mortgages] away for free,” Trump said, contrasting that with a plan to bring in “a trillion dollars” from private capital investors.

Critics, however, say that opening the door to Wall Street again—especially with such massive financial institutions—risks repeating the very mistakes that led to the 2008 crash. They also question whether a public offering would attract enough interest in a high-rate environment.

Regardless, the direction is clear. Trump has spent months tightening his grip on housing and financial policy, and this could be the boldest step yet. With both Republican leadership and private sector allies aligned behind the idea, Fannie and Freddie’s future may soon look very different.