Bill Ackman has never been shy about sharing an opinion, and this week he lent his voice to a push to get Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC) out of government conservatorship. The hedge fund manager replied "True" on Wednesday to an X post from a user named CaliRefugee1, who argued that moving slowly leaves the mortgage giants' trillion-dollar cash-generating capacity sitting around as what he called a "massive war chest" that could benefit Democrats if they retake power in 2028.

Ackman's agreement came with a familiar argument: speed is necessary to prevent what the Trump administration describes as "waste, fraud, and abuse." In other words, the longer the companies stay under government control, the more opportunity there is for the kind of mismanagement that critics of the status quo love to point to.

Bessent Signals Fannie-Freddie Plan For 2027-28

The timing question got some clarity Tuesday when Treasury Secretary Scott Bessent said on 2WAY's "The Morning Meeting" that the administration expects to be "tackling" the companies' ownership structure in 2027 or 2028. Bessent offered a key caveat: "Whatever we do is going to be guided by making sure that the spread on mortgages, on agency mortgages over the Treasury does not increase."

That's the practical concern that has kept Fannie and Freddie in limbo for years. The two companies have been under government conservatorship since the 2008 financial crisis, and any exit plan has to avoid spooking the mortgage market. If the spread between agency mortgage-backed securities and Treasuries widens, that translates directly into higher borrowing costs for homebuyers. Bessent is essentially saying the administration won't let ideology get in the way of the housing market.

Ackman Challenges Treasury's Fannie-Freddie Deal

Ackman's interest in this saga is not new. In March, he criticized the U.S. Treasury's handling of Fannie and Freddie, arguing that the 2012 Net Worth Sweep diverted the mortgage companies' quarterly profits to the government even though they had already repaid their bailout. He said shareholders are seeking enforcement of the original senior preferred stock agreement, not a government handout.

To make his case, Ackman contrasted the terms imposed on Fannie and Freddie with those offered to banks during the 2008 crisis. He said Treasury provided the mortgage firms with $193 billion in senior preferred stock at a 10% coupon, plus commitment fees and warrants for 79.9% ownership in each company. According to Ackman, the companies have since paid Treasury $301 billion, including repayment of the principal and $25 billion more than the original contract required.

He has called freeing the firms from government conservatorship his top investment idea for 2026, arguing that it could generate substantial taxpayer returns. That's a bold claim, but Ackman has made a career of making bold claims and then explaining them in great detail. Whether the administration moves on his timeline or Bessent's, the pressure to do something is clearly building.