Trump Administration Plans To Privatize Fannie Mae, Freddie Mac

The Trump administration aims to privatize Fannie Mae and Freddie Mac, which have been under government control since the 2008 financial crisis. These companies play a crucial role in the housing market by buying mortgages and selling them as securities. While there is bipartisan support for ending government conservatorship, the process is complex and will require extensive negotiations between the administration, the Federal Housing Finance Agency, and Congress.

What is the main goal of the Trump administration's plan regarding Fannie Mae and Freddie Mac?

• To increase government control over the companies

• To privatize the companies

• To merge the companies into one entity

• To eliminate the companies entirely

Why were Fannie Mae and Freddie Mac placed under government conservatorship in 2008?

• To reduce their influence in the housing market

• To prevent their bankruptcy

• To expand their operations

• To increase their market share

What role do Fannie Mae and Freddie Mac play in the mortgage market?

• They insure home loans

• They directly lend money to homebuyers

• They buy mortgages and package them into securities

• They regulate interest rates

What is a major challenge in ending government control of Fannie Mae and Freddie Mac?

• Lack of support from Congress

• The companies' minimal impact on the housing market

• The complexity of their role in the housing market

• Insufficient funding for privatization

What is required for the Trump administration's plan to move forward?

• A public referendum

• Lengthy negotiations among key stakeholders

• Approval from the Federal Reserve

• Immediate implementation without negotiations