Fannie Mae and Freddie Mac shares rally as exit talk intensifies

Shares of mortgage finance giants Fannie Mae and Freddie Mac have seen significant gains, rising more than 60% between Oct. 14 and the market close on Nov. 2, 2026. Both stocks continued to climb on Nov. 3, 2026, gaining approximately 3% as discussions regarding their federal conservatorship gained momentum.

Bill Ackman, founder of Pershing Square Capital Management, has advocated for the release of the two entities from government control. Ackman estimated that ending the conservatorship could generate approximately $500 billion in value, with roughly 80% of that total accruing to taxpayers. He described the potential move as the greatest real estate deal of all time, arguing that it is a political imperative to prevent future administrations from using the companies' cash-generating capacity as a political tool.

The U.S. Treasury currently holds approximately $388 billion in preferred securities and warrants in the companies, which have been under federal conservatorship since Sept. 6, 2008. Treasury Secretary Scott Bessent stated that the administration plans to address the ownership structure of the entities within the next two years. Bessent noted that any transition would require recapitalization and potentially congressional approval, emphasizing that the primary objective is to ensure that agency mortgage spreads over Treasuries do not widen during the process.