‘Higher Mortgage Costs for Consumers While Enriching Wall Street Investors’
The Trump administration is unveiling a plan to effectively alter the actual structure of the housing market, including drastically reducing the federal government’s role in the housing market and massively slash regulations established in response to the 2008 market crash that caused financial devastation for millions around the world.
Calling it “a sweeping plan that could remake the U.S. housing market,” The Washington Post says part of the plan would end “more than a decade of government control of two massive companies, Fannie Mae and Freddie Mac, which back half of the nation’s mortgages.”
In typical Trump administration-speak Treasury Secretary Steve Mnuchin announced the nearly50 new proposals will “protect taxpayers and help Americans who want to buy a home.”
“An effective and efficient Federal housing finance system will also meaningfully contribute to the continued economic growth under this Administration,” he added.
It’s unclear, also, that the administration’s goal is actually to “protect taxpayers and help Americans who want to buy a home.”
The Post reports that “housing experts have warned that allowing [Fannie Mae and Freddie Mac] too much freedom again could lead to higher mortgage costs for consumers while enriching Wall Street investors.”
The Wall Street Journal’s expert on financial regulation and Fannie Mae and Freddie Mac weighs in, suggesting the administration’s moves may be a bad idea:
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