Nearly 50% of mortgages in the U.S. flow through Fannie Mae or Freddie Mac—but a push from the Trump Administration could sell shares of these government enterprises and put them in the hands of the public. The side effects could be significant to those getting or refinancing a mortgage—from interest rates to regulations.
Fannie Mae and Freddie Mac alone take up about half of the mortgage market. The reason you can get a 30-year loan, a lower interest rate, and do it all with standardized regulations is largely thanks to Fannie Mae and Freddie Mac. So, if these enterprises are sold on the private market with Freddie Mac and Fannie Mae IPO-ing, would it put so much privatized pressure on the mortgage market that it could begin to break?
Today, we’re getting into the major consequences from a sale of Fannie and Freddie—currently owned almost entirely by the government. With a $250B payday sitting in limbo, the government could be pushed to sell off the enterprises that enabled average Americans to buy houses. The question is, should it even happen?
In This Episode We Cover
The Fannie Mae and Freddie Mac IPO possibilities and the side effects it would have on mortgage rates and regulations
Why the government took over Fannie and Freddie and whether re-privatizing them will encourage these enterprises to do anything to profit
The massive payday that could come out of a selective sale of Fannie and Freddie
Pros and cons of a sale going through and whether Dave thinks it’s a smart idea
And So Much More!
Links from the Show
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How Privatizing Fannie Mae and Freddie Mac Could Have Seismic Impacts On Real Estate
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