Sandra L. Thompson, the director of the Federal Housing Finance Agency (FHFA), is stepping down on Jan. 19, according to Bloomberg. Thompson served as acting director of the agency beginning in June 23, 2021, before being sworn in as director one year later.

Thompson is the first black woman to lead the FHFA. Prior to her role as director, she served as the agency’s deputy director of the division of housing mission and goals, beginning in 2013. Before joining the FHFA, Thompson served for more than 23 years in various positions at the Federal Deposit Insurance Corporation.

The FHFA, which oversees the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank system, is a crucial player in the mortgage industry. Thompson’s date for resigning comes one day before President-elect Donald Trump is scheduled to take office on Jan. 20. There has been speculation that Trump was likely to fire Thompson after his inauguration.

The Trump administration is expected to pursue plans to privatize the GSEs, which have been in conservatorship since the federal government took control of the companies during the 2008 financial crisis. In the process, the Treasury injected $187 billion of capital into Fannie and Freddie and received the rights to all profits earned by the enterprises. Over the past 16 years, the federal government has reportedly earned about $300 billion from the deal.

Billionaire financier Bill Ackman, founder of Pershing Square Capital Management, and a major shareholder in both Fannie and Freddie, has touted the privatization idea in recent months. The result has been that Fannie Mae’s stock price has soared more than 250% since Trump’s November election.

While the agencies overseeing the two GSEs have released their own plans for privatization, most experts say the road to privatization will be long and complex.