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Fannie Mae and Freddie Mac are preparing for a public IPO in Q1 2026 to exit the government conservatorship they have been in since 2008, with analysis suggesting junior preferred shares could rise to $25 post-IPO.
Fannie Mae and Freddie Mac have expanded their mortgage asset portfolios to a four-year high, adding over $55 billion since May. This strategic shift under the Trump administration is viewed as a move to bolster earnings for a potential public offering while also supporting the political goal of lowering mortgage rates.