US EditionTrump housing finance chief OKs more mortgage spending and adds risk for government-backed lenders
The FHFA raised bond limits to $225 billion each to lower mortgage rates amid political pressure, potentially increasing financial risks for Fannie Mae and Freddie Mac.
- On Jan. 12, FHFA director Bill Pulte quietly granted Fannie Mae and Freddie Mac authority to hold up to $225 billion each, nearly doubling President Trump's $200 billion directive and adding new risks.
- Political pressure over mortgage rates ahead of the midterm elections in November led FHFA director Bill Pulte to instruct Fannie Mae and Freddie Mac to increase bond investments to 'exert meaningful downward pressure' and boost earnings before an initial public offering .
- The FHFA told the companies to submit purchasing plans and allowed the commencement of increases without prior approval, though analysts say neither firm has enough liquid assets for $225 billion purchases, which may require debt.
- Both lenders remain subject to the Treasury's $450 billion cap, and Sen. Elizabeth Warren, Massachusetts, called the move 'a smoke screen' that raises risk concerns, while some members of Congress criticized Pulte's approach.
- The changes reverse nearly two decades of bipartisan consensus established after the 2008 financial crisis, critics say the plan is a gimmick given the mammoth $13 trillion U.S. mortgage market, and neither Pulte nor the FHFA addressed whether Trump or Treasury Secretary Scott Bessent were consulted.
44 Articles
44 Articles
Trump's housing chief OKs more mortgage spending
WASHINGTON — President Trump's federal housing finance director, Bill Pulte, quietly granted government-backed lenders the authority to nearly double a $200 billion bond purchase that Trump ordered to try to lower mortgage rates, a move that could introduce a new…
From $40 billion to $225 billion: Inside the Trump housing plan to radically change the mortgage bond buying plan
President Donald Trump’s federal housing finance director, Bill Pulte, quietly granted government-backed lenders the authority to nearly double a $200 billion bond purchase that Trump ordered to try to lower mortgage rates, a move that could introduce a new level of risk for the companies. An email obtained by The Associated Press that was sent by the Federal Housing Finance Agency to top officials at Fannie Mae and Freddie Mac eliminated caps t…
Associated Press News
Trump housing finance chief OKs more mortgage spending and adds risk for government-backed lenders
President Donald Trump’s federal housing finance director, Bill Pulte, quietly granted government-backed lenders the authority to nearly double a $200 billion bond purchase that Trump ordered to try to lower mortgage rates.
Pulte’s Bond Blitz: FHFA Unlocks Risky Mortgage Gambit to Force Rates Down
Washington—Federal Housing Finance Agency Director Bill Pulte has quietly expanded the buying power of government-backed mortgage giants Fannie Mae and Freddie Mac, authorizing each to hold up to $225 billion in mortgage bonds. The move, detailed in a January 12 email from the FHFA to executives at the two companies, lifts prior caps of $40 billion per entity and builds on President Donald Trump’s recent order for $200 billion in total purchases…
Trump Housing Push Puts Fannie Mae Policy Role Under Fresh Scrutiny
President Trump has directed Federal National Mortgage Association (OTCPK:FNMA) to purchase up to US$200b in mortgage backed securities as part of a wider housing push. The administration is also pursuing steps to lower mortgage rates, restrict large institutional buyers of single family homes, and allow 401(k) funds to be used for down payments. These actions and proposals mark a significant shift in U.S. housing policy with direct implications…
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