President Donald Trump hinted at the possibility of merging government-sponsored enterprises Fannie Mae and Freddie Mac and trading them under the name “MAGA.”
Trump Fuels Buzz With NYSE Bell for ‘MAGA’ Listing
President Trump added to the speculation by posting an image on Truth Social showing him ringing the New York Stock Exchange's opening bell for the debut of a new entity. The backdrop suggested a November 2025 listing for an entity named The Great American Mortgage Corporation, with the ticker symbol “MAGA.”
It remains uncertain how this new entity would be structured, given that both Fannie and Freddie are currently publicly traded. The government would need to take definitive steps soon if it intends to launch the new entity as early as November.
The structure of this new entity remains ambiguous, as both Fannie Mae and Freddie Mac are currently publicly traded. The government would need to take more decisive action soon if it intends to offer the new entity by November.
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Ackman Backs Fannie-Freddie Merger To Cut Mortgage Rates
Responding to this development, prominent hedge fund manager Bill Ackman proposed that merging Fannie Mae and Freddie Mac could help lower mortgage rates and generate significant synergies in their operations and trading price.
He suggested, “A merger would also reduce the cost and risks of government oversight as there would be only one institution that would require FHFA oversight. I suspect that this is @realDonaldTrump 's idea as implied by his post below. It's a really good one.”
Trump-Backed Fannie-Freddie Merger Could Reshape Housing
The potential merger of Fannie Mae and Freddie Mac comes on the heels of Trump’s earlier indications of plans to return the firms to public ownership. This move could have significant implications for the mortgage market and the broader financial sector.
The proposed merger also coincides with the recent decision by the Federal Housing Finance Agency (FHFA) to allow Fannie Mae and Freddie Mac to accept VantageScore 4.0, a credit model that considers on-time rent and utility payments. This shift could potentially expand the mortgage market to approximately five million first-time buyers, further underscoring the potential impact of the proposed merger.
READ MORE:
- 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
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
