President Trump ordered federal regulators on Wednesday to develop plans to change the way the country finances the majority of its home purchases, the Washington Post reported. The plan could upend decades of housing policy while finally reckoning with a major piece of unfinished business from the financial crisis — the fates of Fannie Mae and Freddie Mac, the housing finance giants that back more than half the mortgages written in the U.S. The two companies, which buy mortgages from lenders, then package them into securities to sell to investors, have been under government conservatorship for 10 years after receiving billions in taxpayer bailouts. Lawmakers have been wary of tinkering with their structure, fearful a wrong move could disrupt the housing market and the availability of 30-year mortgages, the most popular way home purchases are financed in the United States. Trump signed a presidential memorandum yesterday directing the Treasury Department to develop a plan that would end Fannie’s and Freddie’s government conservatorships and improve oversight of the companies, which have trillions in assets. Trump also instructed the Department of Housing and Urban Development to submit a plan to change the operations of other parts of the housing system, including the Federal Housing Administration, which helps low-income and first-time buyers.
