Key Takeaways
- • Jon Oksenholt, CEO of Oksenholt Capital Management, released a white paper on Tuesday proposing a "Trump-style framework" for privatizing Fannie Mae and Freddie Mac through a new publicly traded parent company called U.S. Financial Technology and Mortgage Corporation (USFTMC).
- • Under the proposal, Fannie Mae and Freddie Mac would maintain separate federal charters, management structures, and conservatorship status under the Federal Housing Finance Agency (FHFA), while USFTMC would serve as a publicly traded holding company enabling public share purchases.
- • The proposal revives interest in a privatization strategy initially signaled by an AI-generated image posted by President Trump approximately one year ago, which depicted a merged entity called "The Great American Mortgage Corporation"—a plan that did not materialize in 2025.
- • Oksenholt Capital Management holds direct financial interests in the outcome, owning Freddie Mac common stock and junior preferred securities in both Fannie Mae and Freddie Mac, positioning the firm to benefit from any value realization through an IPO.
- • Previous reports indicated the Trump administration was considering an IPO potentially raising approximately $30 billion through the sale of 5 to 15 percent of shares, with earlier expectations for a public offering in fall or winter 2025.
Summary
Jon Oksenholt, founder and CEO of Oksenholt Capital Management, has released a comprehensive white paper outlining a structured framework for bringing Fannie Mae and Freddie Mac to public markets. The proposal, termed a "Trump-style framework," envisions creation of a new publicly traded parent holding company—U.S. Financial Technology and Mortgage Corporation (USFTMC)—that would own the two government-sponsored enterprises while preserving their existing operational and regulatory structures.
The architectural approach maintains Fannie Mae and Freddie Mac as separately chartered entities with independent management and corporate governance, keeping both under the conservatorship of the Federal Housing Finance Agency. This structure allows the entities to continue their core function of purchasing residential mortgage loans and packaging them as mortgage-backed securities sold to institutional investors, while enabling public market access through the parent company vehicle. The proposal also addresses the companies' jointly owned mortgage securitization platform, though specific details regarding its treatment remain incomplete in available sources.
The Oksenholt proposal represents a renewed push toward privatization following a previous initiative that gained attention approximately one year prior, when an AI-generated image distributed by President Trump depicted a merged entity called "The Great American Mortgage Corporation" positioned at the New York Stock Exchange. That plan did not advance in 2025, leaving the long-term status of the mortgage giants uncertain despite reports of meetings between Trump administration officials and major Wall Street bank executives regarding a potential IPO.
Oksenholt Capital Management holds material financial stakes in Fannie Mae and Freddie Mac's outcome, owning Freddie Mac common stock alongside junior preferred securities in both companies. This direct equity position provides the investment firm with significant upside if the proposed privatization succeeds in unlocking shareholder value. Prior media reports had suggested the administration was exploring an IPO that could raise approximately $30 billion through sale of 5 to 15 percent ownership stakes, with initial expectations centered on a 2025 offering timeline.
The renewed proposal emerges amid ongoing debate within investor and policymaker communities regarding optimal capital structures for the mortgage giants, with competing frameworks advanced by various market participants seeking to balance public policy objectives with shareholder returns.
The architectural approach maintains Fannie Mae and Freddie Mac as separately chartered entities with independent management and corporate governance, keeping both under the conservatorship of the Federal Housing Finance Agency. This structure allows the entities to continue their core function of purchasing residential mortgage loans and packaging them as mortgage-backed securities sold to institutional investors, while enabling public market access through the parent company vehicle. The proposal also addresses the companies' jointly owned mortgage securitization platform, though specific details regarding its treatment remain incomplete in available sources.
The Oksenholt proposal represents a renewed push toward privatization following a previous initiative that gained attention approximately one year prior, when an AI-generated image distributed by President Trump depicted a merged entity called "The Great American Mortgage Corporation" positioned at the New York Stock Exchange. That plan did not advance in 2025, leaving the long-term status of the mortgage giants uncertain despite reports of meetings between Trump administration officials and major Wall Street bank executives regarding a potential IPO.
Oksenholt Capital Management holds material financial stakes in Fannie Mae and Freddie Mac's outcome, owning Freddie Mac common stock alongside junior preferred securities in both companies. This direct equity position provides the investment firm with significant upside if the proposed privatization succeeds in unlocking shareholder value. Prior media reports had suggested the administration was exploring an IPO that could raise approximately $30 billion through sale of 5 to 15 percent ownership stakes, with initial expectations centered on a 2025 offering timeline.
The renewed proposal emerges amid ongoing debate within investor and policymaker communities regarding optimal capital structures for the mortgage giants, with competing frameworks advanced by various market participants seeking to balance public policy objectives with shareholder returns.
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