President Donald Trump said that the government will continue to closely monitor and maintain the federal mortgage guarantees for Fannie Mae & Freddie Mac.
The government’s oversight is helping keep borrowing costs down for millions of American home-buyers.
“I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President,” said President Trump in a post on Truth Social.
Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation) have operated under government supervision since the financial crisis of 2008. The US Treasury still holds preferred shares and warrants representing about 80% of their common stock.
Gary LaBarbera, president of the NYS Building and Construction Trades Council, has expressed concern for the stability of Fannie Mae & Freddie Mac operations in a $9 trillion dollar mortgage-backed securities market agency.
“President Trump’s pledge to keep the implicit guarantee in place for Fannie and Freddie when they are released from conservatorship will help ensure mortgage rates remain stable, said LaBarbera.
“But to make sure we never need that guarantee or another bailout, the Treasury Department should put guardrails around Fannie and Freddie so they never chase excessive profit through risky mortgages like they did in the mid-2000s and keep the existing cash backstops in place.Just as important however, let’s use the proceeds from privatizing Fannie and Freddie to build millions of new homes across America for the forgotten middle class,” concluded NYS BCTC President Gary LaBarbera.
