Freddie Mac Taps Kenny Smith as CEO With 2026 IPO Possible

Core Viewpoint - Freddie Mac has appointed Kenny M. Smith as its new CEO effective December 17, ahead of a planned share sale by the Trump administration, which is under pressure to make housing more affordable before the 2026 midterm elections [1][3]. Group 1: Leadership Change - Kenny M. Smith, former vice chairman at Deloitte Consulting LLP, will take over from interim CEO Michael Hutchins, who will remain as president [1][4]. - Smith has 27 years of experience at Deloitte, including a significant role as Global Lead Client Service Partner for Wells Fargo from 2008 to 2019 [4]. Group 2: Strategic Context - The leadership change occurs as the Trump administration considers a public offering of shares in Freddie Mac and its sister company Fannie Mae, which together back over half of the US residential mortgage market [3]. - Treasury Secretary Scott Bessent indicated that the IPOs for Freddie Mac and Fannie Mae are expected to occur "sometime" next year [3]. Group 3: Compensation and Vision - As CEO, Smith will receive a base salary of $600,000, as disclosed in an 8-K filing with the Securities and Exchange Commission [4]. - Smith expressed his commitment to expanding access to homeownership and rental housing across the country, highlighting the vital role of Freddie Mac in the housing finance system [2].