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Donald Trump has proposed an audacious plan that could jeopardize the financial stability of countless American families: the privatization of 70% of mortgages financed in the United States. This suggestion, while perhaps well-intentioned in some alternate universe, seems poised to exacerbate the already precarious situation of the middle class.
On his platform Truth Social, Trump championed his approach:
Our great Mortgage Agencies, Fannie Mae and Freddie Mac, provide a vital service to our Nation by helping hardworking Americans reach the American Dream — Home Ownership. I am working on TAKING THESE AMAZING COMPANIES PUBLIC, but I want to be clear, the U.S. Government will keep its implicit GUARANTEES, and I will stay strong in my position on overseeing them as President. These Agencies are now doing very well, and will help us to, MAKE AMERICA GREAT AGAIN!
However, the implications of such privatization are troubling. Home ownership is already a distant dream for many, and the removal of government guarantees — which are, contrary to Trump’s assurances, anything but implicit — would likely lead to higher interest rates and a reduction in accessible programs meant to assist a diverse range of buyers, from veterans to those with disabilities.
In response to Trump’s audacious proposal, Senate Minority Leader Chuck Schumer remarked:
Trump’s housing proposal to privatize Fannie and Freddie is yet another economic policy that will upend middle-class Americans looking to buy or refinance a home while helping line the pockets of the wealthy.
Experts have warned for years that privatizing Fannie and Freddie – which finances 70% of the American mortgage market – would threaten the financial security of middle-class Americans, making it harder and more expensive to buy a home. The average family could be hit with a whopping $1800 to $2800 increase in annual mortgage costs.
Yet, Trump and his cronies only see an opportunity to loot the state, no matter the cost to hard-working families and our broader economy.
Imagine the horror of facing an increase in your mortgage costs by nearly $3,000 a year. Such a plan would not only deal a devastating blow to the economy but would also enable Trump and his associates to siphon resources from the government to enrich themselves further.
The underlying motivation behind Trump’s proposals appears to be a relentless drive to redirect national wealth upward, which is precisely what privatizing Fannie Mae and Freddie Mac would accomplish.
Every day under Trump’s administration seems to be a step toward weakening America’s economic foundation.
What do you think of Trump’s mortgage scheme? Share your thoughts in the comments below.
