"After a turbulent first year of President Trump's return to the White House, 2026 could bring something singularly disruptive in the housing and mortgage markets: a partial sale of Fannie Mae and Freddie Mac, the government-controlled mortgage giants that underpin roughly 70% of U.S. home loans. The idea, promoted by Federal Housing Finance Agency (FHFA) Director Bill Pulte and Trump himself, has alarmed critics, who warn that unwinding the 17-year federal conservatorship of the two firms could rattle financial markets."
"Pulte has said the administration is "looking to extract value from [Fannie and Freddie] for the benefit of the U.S. taxpayers." Economists point out that there also could be significant risks for taxpayers and that the government would be giving up something of value that it currently controls and effectively owns. What are Fannie Mae and Freddie Mac? The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac) sit at the core of the $13 trillion U.S. housing finance"
The administration, led in part by FHFA Director Bill Pulte, is proposing a partial sale of Fannie Mae and Freddie Mac to extract value for taxpayers. Critics warn unwinding the 17-year federal conservatorship could disrupt financial markets, raise mortgage rates, and generate windfalls for political allies. Economists caution that reprivatization could expose taxpayers to new risks by relinquishing government control over valuable guarantees. Fannie Mae and Freddie Mac guarantee a large share of U.S. mortgages across the $13 trillion housing finance system, reducing lender risk and lowering borrowing costs. Reprivatization efforts were delayed after the 2008 crash amid policy disagreement.
Read at www.npr.org
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