Ending Fannie Mae and Freddie Mac Conservatorship
Fannie Mae and Freddie Mac have been in federal conservatorship for 16 years, and it's time to end it to unlock profits for taxpayers and solve the housing crisis. President Trump has the opportunity to release them back to private markets and create a loan program to support building homes for the middle class.
Key Points
- Fannie and Freddie hold more than $160 billion in capital
- Government backstop to protect the mortgage market
- Creating a low-cost loan program to trigger a middle-class building boom
Pros
- Unlocking profits for taxpayers
- Solving the housing crisis
- Creating a loan program to support building homes for the middle class
Cons
- Potential risks associated with releasing Fannie Mae and Freddie Mac back to private markets