Trump Reaffirms Fannie, Freddie Privatization Plan

President Trump has reiterated plans to privatize Fannie Mae and Freddie Mac, assuring continued U.S. government oversight and implicit guarantees to address concerns over market stability and mortgage rates. The mortgage giants, in government conservatorship since 2008, could benefit shareholders and the federal budget if returned to private ownership, but experts warn this may increase borrowing costs and expose taxpayers to future bailout risks. Consumer advocates caution that mortgage availability and affordability could decline under privatization. Trump's statements have temporarily boosted the companies' stock prices, while the structure of any public offering and the extent of federal support remain unresolved. Congressional involvement and careful planning are viewed as necessary to prevent negative outcomes in the mortgage market. The debate underscores a divide between those favoring market reforms and those prioritizing consumer protection.