
Years after the 2008 financial upheaval plunged the Federal National Mortgage Association (FNMA) into government conservatorship, anticipation for a long-awaited departure from this arrangement is mounting. Since President Donald Trump’s inauguration in January 2025, revived discussions on government-sponsored enterprise (GSE) reform have propelled FNMA stock prices skyward, soaring by 225% year-to-date.
Trump has expressed “serious consideration” towards taking Fannie Mae “public.” The surge in optimism appears partly catalyzed by Bill Ackman, CEO of Pershing Square Capital Management, whose thesis speculates that the Trump administration might vigorously pursue FNMA privatization, potentially yielding “multi-bagger” returns for investors, including the federal government.