Freddie Mac's privatization hinges on Bill Ackman's high-stakes deal with U.S. officials
Freddie Mac is moving closer to ending years of government control as billionaire investor Bill Ackman negotiates a restructuring deal with U.S. officials. The mortgage giant's stock has swung wildly—rising sharply last year but dropping 52% in 2026—amid uncertainty over its future. Meanwhile, the company reported strong financial results, with net income of $10.7 billion in 2025.
Ackman's talks with senior government representatives aim to finalise a plan that would see the state exercise options on roughly 80% of Freddie Mac's common shares. This step is crucial for relisting the company on the New York Stock Exchange. He argues that the government's claims should now be considered settled, given that over $300 billion in dividends have been paid since the 2008 financial crisis.
The company's financial health has improved significantly, with net assets surpassing $70 billion and revenue exceeding $23 billion in 2025. Yet, despite these gains, investors remain cautious. The stock price, which soared from around $5 to over $18 by March 2026 on privatisation hopes, has since fallen back sharply this year.
Analysts at Wedbush warn that a public share offering is unlikely before the midterm elections. Political resistance and shifting administration priorities could delay any move toward full independence. In the meantime, CEO Kenny Smith faces pressure to build the necessary capital to meet regulatory requirements.
Separately, the Federal Housing Finance Agency (FHFA) is pushing reforms to reduce costs for homeowners. One change allows Freddie Mac to accept more affordable insurance models for roofs on single-family homes and condominiums. This comes as 30-year mortgage rates have edged up slightly to an average of 6.22%.
Investors are now waiting for the next quarterly report to assess Freddie Mac's progress toward regulatory compliance. The outcome of Ackman's negotiations will determine whether the company can secure full independence and return to public trading. For now, the path forward remains tied to political and financial hurdles.
