On Wednesday, President Trump indicated that he might disclose two government-backed mortgage lenders.
“I’m quite serious about bringing in Fannie Mae and Freddie Mac,” Trump mentioned. He also noted that decisions about this would be made “in the near future.”
During his initial term in 2019, he attempted to release these entities from government oversight.
Fannie Mae and Freddie Mac were established by Congress but operated as private firms supported by the US Treasury until the housing market downturn in 2008.
Trump expressed that the time is ripe for change. “Fannie Mae and Freddie Mac are performing very well, generating significant revenue, and it seems like the right moment. Stay tuned,” he wrote on Wednesday.
The National Home Builders Association (NAHB) has reported that affordability remains a challenge for numerous American families, with the median price of single-family homes in the US hovering around $460,000.
Current mortgage rates stand at 6.5%, with present underwriting standards reflecting the financial realities for about three-quarters of American households.
Experts have raised concerns that privatizing Fannie and Freddie could lead to a surge in mortgage rates.
On the other hand, some advocacy organizations suggest that such a move might stimulate development and enhance opportunities for middle-class homeownership.
Trump mentioned he would finalize his plans after discussions with Treasury Secretary Scott Bescent, Commerce Secretary Howard Luttonick, and William Prute, the head of the federal housing finance agency.
