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Allies hope a Trump win changes the system for mortgages. Some warn it will make them pricier
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Allies hope a Trump win changes the system for mortgages. Some warn it will make them pricier

  • By R.J. RICO Associated Press

If Donald Trump wins the presidential election, Republicans hope he will fulfill a longstanding GOP goal of privatizing the mortgage giants Fannie Mae and Freddie Mac. The two companies have been under government control since the Great Recession in 2008. Republicans believe the conservatorship has stymied competition in the housing finance market while putting taxpayers at risk should another bailout be necessary. But Democrats and some economists warn that ending the conservatorship would cause mortgage prices to jump since Fannie Mae and Freddie Mac would need to raise fees to make up for the increased risks they'd face without government support.

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