The message gave no other details, nor the official White House News page State the IPO IPO at the time of this letter.
According to the WsjThe Trump administration believes that the IPO could pick up around $ 30 billion from the initial stock offer and that some government officials appreciate the GSEs at a combined $ 500 billion or more. Trump’s image seems to suggest that the IPO would be offered under one company, the Great American MortGage Corporation.
Analysts on Friday were skeptical that such a huge enterprise could be completed by the end of the year.
Bose George, an analyst Keef, Bruyette & Woods (KBW) said: “I feel that it is all done before the end of the year, it seems very difficult. They have to find out the capital levels. Once the process has started, it will be clear that it is not feasible within four months. If there is a real sense of urgency, a point can be done next summer.”
Wells Fargo Analysts Mario Iichaso and Jonathan Carroll wrote in a report on Friday: “We now place the chance of release at 40% as the fundamental challenges remain and the implementation risk is increased.”
When it comes to the IPO, the highest priority is for those in the mortgage industry that the new company still has a sort of government guarantee, which offers the mortgage market safety and keeps the rates low. In May Trump placed about a possible IPO and writes: “I am busy making these great companies public, but I want to be clear, the US government will retain its implicit guarantees, and I will remain strong in my position to keep them as a president.”
Logan Mohtashami of Housingwire Chief Analyst Logan Mohtashami, who has extensively spoke about Trump’s plans for the GSEs on the Daily Podcast Housingwire, said on Saturday that the focus of the Trump administration on reducing the mortgage interest seems to guide their decisions on every IPO.
“The most important thing about an IPO of Fannie and Freddie is that the administration offers a kind of government support to the companies, so the price is not affected. The Trump administration has often said that they will not do this if they believe that the mortgage interest rate would rise,” said MohtaShami.
Mohtashami also remains skeptical about the intention behind Trump’s social posts. “I believe that these kinds of messages are always testing balloons to see how the public or the market reacts. Although specific details have not yet been released, it is reasonable to anticipate that a clear release plan is in development. Meanwhile, more information is being released.”
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