Trump's FHFA Rushes To Rehire Staff Amid $30 Billion Fannie Mae And Freddie Mac IPO, Sparking Investor Frenzy, Housing Market Concerns

The U.S. government's effort to privatize Fannie Mae and Freddie Mac through a $30 billion IPO has prompted the Federal Housing Finance Agency to rehire employees it laid off earlier this year.

FHFA Rehires Key Economists And Executives Ahead Of Historic $30 Billion IPO

The FHFA, led by President Donald Trump–appointed director Bill Pulte, had cut roughly 30% of its workforce in the spring and summer, including economists and board members of the mortgage giants.

Sources familiar with the matter said several of those employees have now been asked to return as the agency prepares for the historic share sale, as reported by the Financial Times on Saturday.  

"There was a Nobel Prize winner on Fannie Mae's board that got fired," said a former executive who left earlier this year.

Board Shake-Ups And Aggressive Restructuring Fuel Investor Speculation

Pulte has also removed key Fannie and Freddie board members, including Freddie Mac CEO Diana Reid, as he pushes ahead with privatization. 

People close to the FHFA believe the administration is aiming to complete the IPO before the 2026 midterm elections. 

"Where President Trump looks, he finds money, and he's found money at Fannie Mae and Freddie Mac, and we're gonna keep on making money for the benefit of Americans," Pulte told Fox Business.

See Also: Bond ETF Investors On Alert During Fed Shake-Up, Rising Yields

FHFA Adopts VantageScore 4.0 And Trump's ‘MAGA’ Merger Plan

Last month, the FHFA informed Fannie and Freddie that they could accept VantageScore 4.0, a credit model that included on-time rent, utility, and telecom payments alongside the traditional FICO score.

The move could potentially open the mortgage market to around five million first-time buyers, though lenders warned adoption would take time.

In a separate development, Trump hinted at merging Fannie and Freddie into a new entity, potentially trading under the name "MAGA," posting an image on social media suggesting a November 2025 listing for The Great American Mortgage Corporation.

Hedge fund manager Bill Ackman said such a merger could lower mortgage rates, create operational synergies, and reduce government oversight costs.

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• Freddie Mac Says 30-Year Mortgage Slips To 6.72%, But Jerome Powell's Cautious Rate Tone Fuels ?Higher For Longer' Fears, Pressuring Housing Market

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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