Some officials believe the offering could raise around $30 billion and value the combined firms at roughly $500 billion or more.

U.S. President Donald Trump's administration could kick off initial public offerings of Fannie Mae and Freddie Mac later this year, according to a senior administration official, marking a key milestone for the mortgage finance giants that have been under government control for years.

Fannie Mae (FNMA) and Freddie Mac (FMCC) stocks jumped in Friday late morning trading after a media report that the Trump administration is planning to sell stock in the two mortgage titans, a long-awaited step that could start later this year.