P
resident Donald Trump announced this week that a plan to take Fannie Mae and Freddie Mac public is underway, despite his intention to maintain oversight. The move was met with skepticism from Democrats, including Sen. Chuck Schumer, who warned it could harm middle-class Americans. FHFA Director William Pulte expressed support for the plan but also called on Federal Reserve Chair Jerome Powell to lower interest rates, citing their impact on the housing market.

    Pulte praised Fannie Mae's new AI-driven mortgage fraud detection platform, which aims to prevent future losses in the US housing market. However, he criticized FICO and its cost increases, suggesting that some credit reports have doubled in price since President Trump's first term. Pulte also questioned the Fed's decision not to lower interest rates, stating that it would be beneficial for the housing market.

    The Mortgage Bankers Association (MBA) has removed diversity, equity, and inclusion language from its website, following a review initiated by the White House. The move comes as part of a broader rollback of DEI policies across various organizations. Meanwhile, Fannie Mae's new mortgage fraud detection platform is expected to improve safety and soundness in the housing system.

    FHFA Director Pulte suggested that Fannie and Freddie may remain in conservatorships, with President Trump holding significant control over their operations. The president's plan to take the GSEs public has sparked debate about their future role in the US housing market.