NEW YORK, Aug 6 (Reuters) -

U.S. President Donald Trump met the CEOs of Citigroup ( C/PN )

and Bank of America ( BAC ) on Wednesday to discuss the

administration's plans to privatize U.S. mortgage financing

companies Fannie Mae and Freddie Mac, according to two sources

familiar with the situation.

Citi CEO Jane Fraser met with Trump at the White House, said

one of the sources, who declined to be identified discussing a

private meeting. Trump also met BofA CEO Brian Moynihan and his

team, a second source said.

The White House declined to comment on private meetings.

The Trump administration plans to take both firms public and

is asking for pitches from the largest banks. The president

plans to privatize the mortgage companies, potentially with a

large share offering. But in social media posts in May, Trump

said he intends to keep government mortgage guarantees and

oversight.

The meetings follow those held in late July with other bank

leaders, including Goldman Sachs ( GS ) CEO David Solomon, the

second source said.

Fannie Mae and Freddie Mac have been under federal

conservatorship since 2008 following the financial crisis,

during which both entities became insolvent amid the subprime

mortgage meltdown.

Since then, the companies have rebuilt capital reserves,

repaid their Treasury loans and returned to consistent

profitability. Shares of both firms, currently traded on

over-the-counter markets, have surged amid speculation over

privatization plans.

The pair guarantee over half of the nation's mortgages.

Taking the firms public would end a far-reaching

government backstop that was intended to be a temporary

reprieve, but could also make mortgages pricier and harder to

obtain if the entities guaranteeing fully return to the private

sector.

Analysts noted that while Trump has been willing to risk

economic turmoil in his wide-ranging tariff agenda, there may be

more sensitivity to drama in mortgage rates, which are highly

visible and familiar to many consumers.

"Tariffs may have impacted the stock market, but they did

not result in immediate price hikes at Walmart or Dollar

General," wrote TD Cowen analyst Jaret Seiberg in a May note.

"By contrast, the price of mortgages will respond to each recap

and release development. That makes the political cost more

immediate. It is why we expect a slower and more deliberative

process."