Allies of former President Donald Trump are reportedly strategizing to privatize government-sponsored enterprises Fannie Mae and Freddie Mac if he wins the 2024 election. Key figures in these discussions include Larry Kudlow and John McEntee, who are exploring options that may involve the Treasury Department partially backing loans through a standby guarantee. This move aims to end U.S. government control established during the financial crisis of 2008, which has helped stabilize the housing market. Previous attempts to privatize these entities during Trump's last term were unsuccessful due to concerns about potential risks to the housing sector. Critics warn that privatization could limit homebuyers' access to credit and increase taxpayer risk, while proponents argue it could lead to more efficient operations. The discussions point to a significant shift in the mortgage finance landscape if realized.