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Billionaire Ackman Unveils Proposal to Reshape Fannie Mae and Freddie Mac
17 Nov
Summary
- Billionaire hedge fund manager Bill Ackman to introduce new proposal for Fannie Mae and Freddie Mac
- Ackman's plan aims to optimize value for taxpayers and minimize mortgage spread risks
- Ackman's firm is the largest common shareholder of Fannie and Freddie
On November 18, 2025, billionaire hedge fund manager Bill Ackman is scheduled to detail a fresh proposal for mortgage-finance companies Fannie Mae and Freddie Mac. Ackman, whose firm Pershing Square is the largest common shareholder of both firms, asserts that his plan will allow the Trump administration to optimize value for taxpayers, minimize the risk of mortgage spreads widening, and enable the U.S. Treasury to exhibit a mark-to-market value for its shareholdings in the two entities.
Ackman had previously suggested merging Fannie Mae and Freddie Mac into a single entity to decrease costs and lower mortgage rates, believing this would simplify the housing-finance system and unlock shareholder value. His new proposal, if accepted, could potentially reshape the housing market and the operation of the two mortgage giants.
The announcement comes as the Trump administration is investigating new methods to make housing more affordable, including a proposed 50-year mortgage, despite warnings from critics that such measures could burden borrowers with more long-term debt. Ackman's latest plan, if implemented, could further impact the housing finance system and the stakeholders involved.
