Core Viewpoint - Billionaire investor Bill Ackman proposed merging Fannie Mae and Freddie Mac to lower mortgage rates and create significant operational synergies [1][3] Group 1: Proposed Merger Benefits - The merger of Fannie Mae and Freddie Mac is expected to reduce mortgage rates and lower the costs and risks associated with government oversight, as it would consolidate oversight under one institution [3][5] - The combination of Fannie Mae and Freddie Mac could lead to a valuation of nearly $500 billion for both entities combined during their potential initial public offering later this year [4] Group 2: Background Information - Fannie Mae and Freddie Mac were established by Congress to support the housing market by ensuring affordable mortgage financing, but they faced significant challenges during the financial crisis [5][6]