President Trump has indicated that he is seriously contemplating taking Fannie Mae and Freddie Mac public, privatizing the mortgage giants which have been under government control since 2008. Trump believes the companies are financially performing well and thinks the timing may be appropriate for this move. Critics are concerned that privatization could result in an increase in mortgage rates. Discussions among key officials, including those from the Treasury and Commerce departments, are expected leading up to this significant decision.
"Fannie Mae and Freddie Mac are doing very well, throwing off a lot of CASH, and the time would seem to be right," Trump wrote in a post on Truth Social.
"No conservatorship should be indefinite. However, any actions pursued should be carefully designed and executed," said Treasury Secretary Scott Bessent during his confirmation hearing.
"Fannie and Freddie shouldn't be in conservatorship forever. But it's critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates," said William Pulte.
Critics warn that privatizing Fannie Mae and Freddie Mac could lead to higher mortgage rates, raising concerns about the potential impact on the housing market.
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