MW Trump taps Pulte for a top intelligence job. This makes an IPO for Fannie and Freddie look even more unlikely.
By Victor Reklaitis
Shares in Fannie Mae and Freddie Mac slump after the president's announcement
Bill Pulte, director of the Federal Housing Finance Agency and chair of Fannie Mae and Freddie Mac, got an additional job on Tuesday - acting director of national intelligence.
Shares in Fannie Mae and Freddie Mac tumbled Tuesday as traders reacted to President Donald Trump's announcement that Bill Pulte, the chair of the two government-backed mortgage giants, would serve as acting director for national intelligence.
The news about Pulte, who is also director of the Federal Housing Finance Agency, is negative for Fannie and Freddie given that he was a big advocate for their privatization, said Terry Haines, a veteran analyst and founder of forecasting firm Pangaea Policy. "Today's signal: that's on the back burner now, not that it's ever gotten off the ground," Haines said in a note.
Fannie's stock (FNMA) recently was down 4% in trading on over-the-counter markets, while Freddie's (FMCC) also shed 4%. The two companies have been under government conservatorship since the global financial crisis of 2008-09, but there had been expectations at the start of Trump's second term that his administration would have them go public again in massive initial public offerings - although there were concerns that could raise mortgage rates.
Pulte's new job "makes a transaction that would permit Fannie and Freddie to exit conservatorship less likely," and that development "already was going to be operationally and politically difficult," said Jaret Seiberg, an analyst and managing director at TD Cowen's Washington Research Group. "We do not see how one could surmount those obstacles if the FHFA director is devoting most of his time to national-security issues."
In a social-media post on Tuesday morning, Trump said Pulte will remain director of the FHFA and chair of Fannie and Freddie while serving as acting director of national intelligence. That post had been filled by Tulsi Gabbard, a former U.S. House member, but she announced her resignation last month.
Trump praised Pulte - whose grandfather founded home builder PulteGroup $(PHM)$ - while announcing his new responsibilities. The president said his pick "has deep experience managing the most sensitive matters in America, the safety and soundness of the Markets, and over 10 Trillion Dollars at Fannie Mae/Freddie Mac, a substantial increase from where it was just 12 months ago."
Others criticized Trump's decision, noting that Pulte has a lack of experience with intelligence agencies or national-security matters. "Terrible pick. The one quality that Pulte has demonstrated is a zeal to seek revenge on Trump's political enemies," Ed Whelan, a distinguished senior fellow at the Ethics and Public Policy Center, a conservative think tank, said in a social-media post.
-Victor Reklaitis
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June 02, 2026 11:46 ET (15:46 GMT)
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