Allianz SE's Pacific Investment Management Co. warned that the Trump administration's proposal to sell new shares of Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) could result in higher mortgage rates if the debt issued by the mortgage giants loses the government's backing.

The Trump administration is considering selling the US government's stakes in Fannie Mae (FNMA) and Freddie Mac (FMCC) through a public offering that could raise $30 billion. Yahoo Finance Senior Markets and Data Editor Jared Blikre explains what public trading of the mortgage giants would mean for investors after years of government conservatorship.