Billionaire investor Bill Ackman plans to lay out a strategy tomorrow for reshaping Fannie Mae and Freddie Mac, the mortgage powerhouses that underpin much of America’s housing market. With the Trump administration pushing for ways to boost homeownership and cut costs for families, Ackman’s proposal arrives at a pivotal moment for the nation’s economy.
Ackman, who runs Pershing Square Capital Management, has kept a massive stake in both companies—over 210 million shares combined—making his firm their largest common shareholder. He sees room for major improvements in how these government-sponsored enterprises operate, especially after their rocky history during the 2008 crisis that left them under federal conservatorship.
The upcoming livestream on X, set for November 18 at 10:30 a.m. ET, will detail a transaction designed “to achieve all of its objectives of maximizing value for taxpayers, eliminating the risk of mortgage spreads widening, and enabling the U.S. Treasury to demonstrate a mark-to-market value for its shareholdings in the two companies.”
This isn’t Ackman’s first pitch on the topic. Earlier this year, he floated the idea of “folding Fannie Mae and Freddie Mac into a single entity to cut costs and reduce mortgage rates,” which he argued would streamline operations and free up value for shareholders.
Fannie Mae, born in 1938 to fuel homeownership during the New Deal era, and Freddie Mac, created in 1970 to inject competition, together handle about half of all U.S. residential mortgages—around $12 trillion in debt. They buy loans from banks, package them into securities, and keep credit flowing to keep rates steady for American borrowers.
As the economy rebounds under pro-growth policies, moves like Ackman’s could help shield taxpayers from future risks while making housing more accessible. He emphasizes that “the transaction could be completed before year-end, ‘meeting the expectations of all stakeholders.'”
With the administration eyeing options like a 50-year mortgage to ease payments for working families, Ackman’s input could spark real progress in fortifying America’s financial backbone. Investors and homeowners alike will be tuning in to see how this plays out for the broader economy.
