Navigating the Challenge of Privatizing Fannie and Freddie Without Raising Mortgage Rates

Reported 2 days ago

The Trump administration faces a significant challenge in privatizing Fannie Mae and Freddie Mac while ensuring that mortgage rates do not increase, as economic experts anticipate rising costs if government oversight is removed. Both companies, which play a vital role in the housing market by securing loans, could see borrowing costs rise if investors perceive them as riskier without government backing. The current environment of low home sales and high mortgage rates adds complexity to the privatization discussions.

Source: YAHOO

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