Democratic senators led by Senator Elizabeth Warren, Ranking Member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, published a letter pressing Department of Housing and Urban Development Secretary Scott Turner on whether the Trump Administration’s plan to reprivatize Fannie Mae and Freddie Mac could raise mortgage costs and rents and restrict access to mortgage credit. The letter argues that changing the ownership of the housing finance giants would be a “monumental undertaking” affecting the broader housing system and warns that, if mismanaged, ending the conservatorships and Treasury’s role could increase mortgage costs, cut off access to mortgage credit, undo reforms made over the past 16 years, and compromise the housing market and the wider U.S. economy. It also raises concerns that privatization could create a taxpayer-funded windfall worth billions for hedge funds and wealthy investors, and asks Turner to commit that any changes will not increase housing costs while rewarding such investors. The senators requested a prompt and thorough response from Turner.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-02-26
U.S. Senate Committee on Banking, Housing and Urban Affairs Democrats press HUD Secretary Turner over proposed reprivatization of Fannie Mae and Freddie Mac
Democratic senators, led by Senator Elizabeth Warren, urged the Department of Housing and Urban Development Secretary to address concerns over the Trump Administration's plan to reprivatize Fannie Mae and Freddie Mac. The letter warns this move could raise mortgage costs, restrict credit access, and benefit hedge funds and wealthy investors at taxpayers' expense. The senators seek assurance that changes will not increase housing costs.