The IPOs could give the two government-backed entities a combined valuation of nearly $500 billion, according to the senior official, who spoke on condition of anonymity.

Details of the share sale have not been disclosed, and it remains unclear whether the companies would go public as a single entity or separately. The official said that President Donald Trump is weighing all options.

The Epoch Times has sought comments from Fannie Mae and Freddie Mac, as well as the Federal Housing Finance Agency (FHFA), which regulates the entities, but did not receive a response by publication time.

Fannie Mae and Freddie Mac provide liquidity and stability to the U.S. housing mortgage market, which have been placed under government conservatorship since 2008 following a substantial downturn in housing markets at the time, according to the FHFA.

The two entities buy mortgages from lenders and either hold the mortgages in their portfolios or sell them as mortgage-backed securities.

It is uncertain whether the entities would remain under government conservatorship if the IPOs move forward. The Treasury Department holds preferred shares in the companies and warrants to purchase about 80 percent of their common stock, according to a 2021 statement.

Trump initially announced in May his plan to take Fannie Mae and Freddie Mac public, saying he would discuss with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and FHFA Director William Pulte before making a decision.

The president later emphasized that the government would retain its oversight of the two entities, even as it relinquishes control by taking them public.

"I am working on taking these amazing companies public, but I want to be clear, the U.S. Government will keep its implicit guarantees, and I will stay strong in my position on overseeing them as President," he wrote on social media.