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US Politics

Trump and Treasury’s big challenge: Privatize Fannie and Freddie without making mortgages more expensive

Yahoo Finance
Summary
Nutrition label

72% Informative

Fannie Mae and Freddie Mac shares jumped this week after new comments from Trump administration officials and a board shake-up at the companies drew fresh attention to their potential release from government control.

Housing experts see plenty of reasons to be skeptical about the end of an arrangement that dates back to the depths of the financial crisis.

Fannie and Freddie play a crucial role in lending by buying up mortgages from banks and other lenders.

There’s one scenario that could result in lower rates: The government could formally back the companies before they’re released.

But that backstop would require an act of Congress , which is politically unlikely.

Any release plan will take time to develop given the complexities and the money involved.

VR Score

82

Informative language

85

Neutral language

63

Article tone

semi-formal

Language

English

Language complexity

54

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

no external sources

Source diversity

no sources

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