🏛 Fannie & Freddie: Time to Release or Keep Them on a Leash?

This weekend, my two youngest launched a business idea just to see if it had legs—and it instantly took me back to one of my ideas as a teenager, running “The Gutter Guys” with the tagline: “Our mind is in your gutter.” (Spoiler: we didn’t land a single job 😂)

They were hesitant at first but Ash and I challenged them to ‘just do it’!

What blew me away was their follow-through—name, logo, marketing, presentation, product and even a Square register. It reminded me: stop overthinking, start doing. The best ideas don’t need to be perfect—they just need a push.

We are posting regular content to Instagram (Nick | Kreg) and Facebook (Nick | Kreg) to help you and your buyers stay informed. Be sure to follow us!

Read time: ~5 minutes

Rates ended DOWN compared to last week, and volatility was HIGH. Rates are in the high 6% range for most loan types without paying discount points. Paying discount points can get you in the mid 6's.

Why Fannie/Freddie Have Been Babysat by Uncle Sam Since 2008

Fannie and Freddie are the engine behind our mortgage system. They don’t lend directly—they buy loans, bundle them, and sell them to investors. That’s what keeps rates stable (or supposedly stable) and money flowing.

But in 2008, they got overloaded with bad loans. They were bleeding money and teetering on the edge of collapse. If they had failed, the entire mortgage system could have frozen. The feds stepped in fast—injecting cash and placing both under control of the newly established Federal Housing Finance Agency (FHFA) through a conservatorship. Think of it like financial life support: the companies run, but the government pulls the strings.

Here’s the kicker—there’s no official guarantee backing their debt, but the market acts like there is this explicit guarantee because the Treasury promised hundreds of billions in support.

Fast forward 15+ years… they’re still under government control. They’ve paid their dues (with interest), but there’s no exit plan—until now...

🏛 Fannie & Freddie: Time to Release or Keep Them on a Leash?

President Trump and Bill Pulte (head of FHFA) have both shown interest in removing the conservatorship of Fannie and Freddie.

Let’s break it down — the good, the bad, and the “brace yourself” — if Fannie and Freddie are free again.

✅ BENEFITS: What Could Go Right?

1. More Innovation 🚀
Private companies move faster. Expect more tech, more modern loan options, and maybe even a better borrower experience. (Shocking, we know.)

2. Less Taxpayer Exposure 💸
Right now, Uncle Sam is on the hook if something blows up. Privatization could shift risk away from the public... if done right.

3. Clearer Rules of the Game ⚖️
Ending conservatorship means no more “will they, won’t they” drama. Investors, lenders, and agents get more long-term clarity since Fannie and Freddie would report to their stock owners.

4. Potentially More Capital 💰
As public companies, they’d raise private funds, not rely on Treasury taps. That could strengthen the mortgage system — in theory. Additionally, if the government backs out they would sell their shares as an IPO resulting in a windfall for the Treasury.

⚠️ RISKS: What Could Go Sideways?

1. Higher Mortgage Rates 📈
No government safety net = higher risk for investors = they demand higher returns = your buyers pay more in interest. Ouch. Though some argue they would return to a “too big to fail” status like they had prior to 2008.

2. Tighter Guidelines 🔒
Public companies answer to shareholders, not communities. Lending guidelines could tighten up significantly.

3. Less Focus on Affordable Housing 🏚️
Today, they’re required to support first-time buyers and underserved markets. That mandate may weaken in a for-profit model.

4. System Shock ⚡
Transitioning from government control to Wall Street isn’t exactly a smooth handoff. Expect turbulence — in rates, policy, and access.

Bill Pulte is on record stating there are other, more pressing, matters to tend to but it does feel like removing the conservatorship is picking up steam.

The HELPER Act Needs Approved ASAP

A group of lawmakers is pushing for a game-changing bill that could give our nation’s heroes—cops, firefighters, EMTs, and teachers—the same homebuying power as veterans. Think VA loan benefits, but for the everyday protectors and educators who keep our communities running.

The HELPER Act—short for Homes for Every Local Protector, Educator, and Responder—is a proposed federal bill designed eliminate significant financial barriers by offering 100% financing with no down payment and no monthly mortgage insurance premiums for eligible first-time homebuyers in those related professions.

This one-time-use home loan program by the Federal Housing Administration (FHA) proposes:

• No Down Payment: Eliminates the need for a substantial upfront payment, making it easier for eligible individuals to purchase a home.

• No Monthly Mortgage Insurance Premiums (MIP): Removes the recurring cost typically associated with FHA loans, reducing monthly expenses for homeowners.

• Upfront Mortgage Insurance Premium (UFMIP): Requires a one-time UFMIP of 3.6% to ensure the program's financial health, which is similar to current FHA and VA loan programs.

Now this is what we need to help expand our client base, accelerate transactions and enhance community engagement! Where do Kreg and I sign up to support 💪💪

5 New Listings w/o Cold Calling 🥶🥶

My friend and Chicagoland real estate agent, Tommy Choi, added a 🔥🔥post on Facebook last week I had to share.

First, follow Tommy on socials. You’re welcome.

Second, here’s how he landed a ton of new listings.

1. Compile a list of all your past buyer clients and their purchase dates.

• I separate them all by month

• I also group them by neighborhoods

2. Screen record a 6-8 minute video of you showing comps and sharing value.

• I like using Loom for recording

• Use the line "If I were to list today..."

3. End the video with a CTA to schedule a 1:1 with you to go over it in more detail.

• When sending the video link type "What do you think?" OR

• Write "Are you surprised by the value of your home?"

Implementing these strategies can quickly transform your results and drive significant growth without the need for awkward cold calling.

Instagram Reels from the Week

Two Ways We Can Help

1. Let’s collaborate – schedule a zoom meeting

2. Tough deal?  Let us help!

Don’t hesitate to reach out if you need anything at all. Have a wonderful week!