The illustration from President Trump's Truth Social post, like some others he's posted around his policy initiatives, is designed to depict an idealized vision. This one shows "the Great American Mortgage Corporation" listing on the New York stock exchange in November 2025.

While the social media post may not be literal, it confirms other signals the current administration is planning to work near-term on long-delayed plans to make Fannie Mae and Freddie Mac — or at least part of them — more like other publicly-traded entities again.

"One thing we are clear on: transforming and ideally monetizing the GSEs is clearly a priority of this administration," said Bank of America's Jeana Curro, Chris Flanagan and Ge Chu in a mortgage-backed securities research report published Sunday.

The questions that remain include whether it can be done as quickly as stated and deliver the payoff the government reportedly seeks.

What analysts think of the envisioned offering so far

The prospects for fulfilling reported government plans to sell 5 to 15% of the shares at a valuation of $500 million and raising $30 billion in proceeds before year-end is "very unlikely," Keefe, Bruyette & Woods analysts Bose George and Frank Labetti said in a report Monday.

Given what's been reported to date, KBW estimates that the valuation could be closer to half the stated amount.

"We think the key factor remains current minimum capital, which is roughly 4.25% of assets for both companies and results in estimated run-rate ROEs of 7 to 9%," the analysts said in their report, referring to the enterprises' return on equity.

"We believe investors won't be willing to buy shares of companies with such low ROEs," they added.

A public offering likely calls for a new capital rule, which typically requires a comment period, according to the KBW analysts.

The Bank of America strategists also indicated that capital requirements would play a key role in a public offering as would how the government's stake in the GSEs and President Trump's commitment to an implicit guarantee would be handled.

"We believe that the implicit guarantee was (and probably remains) the main concern in the market. While capital levels are important for safety and soundness, the liquidity that the GSEs provide through the secondary market is based on their implicit guarantee," they said.

Although views are mixed on the Trump administration's push for a public offering while keeping government links to the GSEs, Bank of America strategists see the logic if the aim is near-term action.

"Our high level view remains that taking the GSEs out of conservatorship remains far too complex an idea to be tackled this year," they said.

Putting a potential record-setting offering in perspective

The offering envisioned for Fannie and Freddie would be off the charts in terms of other stock-market launches, according to a report from Walt Schmidt, senior vice president of mortgage strategies at FHN Financial, which notes only three global public offerings on record have raised more than $20 billion.

However, it would be difficult to immediately use proceeds from a public GSE offering for anything but debt reduction. Schmidt noted that $30 billion is "only a drop in the bucket compared to U.S. government deficits," which number in the trillions, as does the MBS market the enterprises back.

The report suggested weighing what's to be gained from an offering against the risk of any upset to the existing market carefully in light of these numbers.

"In the context of making sure that a $7+ trillion MBS market that provides more than half of the home financing in the U.S. is not unduly disrupted, any move away from conservatorship must be very well planned and executed," Schmidt said.