FHFA director Thompson to resign ahead of Trump inauguration

Sandra Thompson, director of the Federal Housing Finance Agency, will step down on Jan. 19, an agency spokesperson told Bloomberg.

The FHFA oversees Fannie Mae and Freddie Mac, two key players in the US housing market, as well as the Federal Home Loan Bank system.

If Thompson had opted against resigning, President-elect Donald Trump would have been able to fire her quickly after his Jan. 20 inauguration due to a US Supreme Court decision that made it easier to remove the FHFA director.

READ MORE: Fannie, Freddie release likely. It's just a matter of when

Fannie Mae has soared 258% since Trump's election in November, in large part due to the promotion of Bill Ackman. The Pershing Square Capital Management founder has said the Trump team's renewed vow to shrink the role of government will help finish what his first administration started in releasing Fannie and Freddie from conservatorship.

During Thompson's tenure, some FHLBanks experienced heightened scrutiny after they had extended loans to other banks that later collapsed as part of a 2023 regional banking crisis.