US President Donald Trump is reportedly considering the sale of Fannie Mae and Freddie Mac, two government-backed mortgage lenders that played a significant role in mitigating the effects of the 2008 financial crisis. The potential privatization could raise trillions of dollars for the US government.
Fannie Mae and Freddie Mac were severely impacted during the financial crisis, with their stock values plummeting due to their extensive exposure to subprime mortgages. However, they have since been stabilized and are now generating significant profits for taxpayers.
By privatizing Fannie Mae and Freddie Mac, Trump may be seeking to raise funds that could be used to pay off the national debt or invest in other government initiatives. The move would also mark a significant shift in the US mortgage market, as private companies would take over the responsibility of guaranteeing millions of mortgages.
The potential sale has sparked concerns among lawmakers and industry experts, who argue that it could lead to increased costs for taxpayers and decreased access to affordable housing options. Despite these concerns, Trump’s administration appears committed to pursuing the privatization plan.
Source: https://www.thetimes.com/business-money/economics/article/donald-trump-mortgage-annie-mae-freddie-mac-f8tk7j00n