Political challenges stand in the way of the president-elect pulling off what the hedge fund manager called “the biggest deal he’s ever done.”

Fannie Mae and Freddie Mac, the government-backed mortgage giants, could be headed for privatization under Donald Trump 's second term, a move experts say might drive mortgage rates higher in a housing market already plagued by affordability challenges.

Shares of government-backed home loan giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) experienced a slump on Thursday, even as Bill Ackman from Pershing Square put forward a positive argument for the stocks,

Fannie and Freddie play crucial roles in the housing market—setting lending standards for home loans and owning or guaranteeing around half of all r