Manuel Balce Ceneta / AP
The new Trump Housing Development Plan is essentially aimed at changing the rules for mortgage giants Fannie Mae and Freddie Mac. The two companies are the basis for mortgages in the US.
The government created it decades ago to provide a government-guaranteed loan guarantee designed to ensure that responsible, qualified homebuyers always have money to obtain mortgages. They later became mostly private companies but have been under state control since the financial crisis.
Now the Trump administration says it wants to turn Fannie and Freddie back into private companies, change the mortgage market backstops they provide, and increase competition from other private companies.
Mike Calhoun, the president's concern that such changes drive up borrower costs and that the administration could impose new rules on home buyers that would be too strict, for example, higher down payments to qualify for a government-backed mortgage to qualify.
"For working-class Americans who want to buy a home, this could make it much harder to obtain a mortgage and increase mortgage costs," says Calhoun “/>