Delinquent Homeowners Afraid Of Being Homeless As Trump Announces, “No More Loan Modifications After January 20th!”

President-Elect Trump is planning some major changes to the lending industry when takes office on January 20, 2025. He has publicly told delinquent homeowners point blank, “No more loan modifications! If people can’t pay, we’ll take it away. period!” 

Trump plans on privatizing Fannie Mae and Freddie Mac. This would essentially end government subsidies to the bailed out GSEs. These subsidies pay them to give homeowners a generous terms on loan modifications. Many American homeowners use loan modifications to restructure their mortgage to help them keep their home during a foreclosure. 

Trump tried unsuccessfully to privatize Fannie and Freddie during his first White House term. However, some of his top allies have called on him to renew the push after his inauguration later this month.

Trump supporter Bill Ackman, who owns shares of Fannie and Freddie, has led the charge. He is clamoring on social media for the incoming administration to oversee their swift exit from government conservatorship.

Ackman claims that a successful emergence of Fannie and Freddie from conservatorship would generate more than $300 billion of additional profits to the federal government.

He also claims it would remove some $8 trillion in liabilities from the government’s balance sheet.

Privatization would be a major milestone for Fannie and Freddie.

The GSEs were created by Congress to bring liquidity to the secondary mortgage market. Thus, ensuring a ready supply of loans for homebuyers.

Read more at 5th Avenue South Solutions

Also, Check Out This MFI-Miami Article From 2019:

FHFA Is Prepping For Massive Fannie Mae And Freddie Mac IPO