Archive · 24 Jan 2026
Trump's Housing Finance Chief Expands Mortgage Bond Purchases
The head of a government housing finance agency, Bill Pulte, allowed two big lenders, Fannie Mae and Freddie Mac, to buy almost double the amount of mortgage bonds they were previously allowed.
This could help lower mortgage rates, but some people are worried it might be risky.
Pulte says the lenders won't buy more than President Trump originally said, but others think this might not help much in the long run.
Some politicians and experts are concerned that this could lead to problems, similar to what happened before the financial crisis.
The lenders might use this to make more money before they go public, but they might need to borrow money to do so.
FHFA granted Fannie Mae and Freddie Mac authority to hold up to $225 billion in mortgage bonds each, nearly doubling the previous cap.
The change could increase bond purchases by $170 billion over Trump's initial $200 billion instruction.
Pulte denied exceeding the $200 billion limit, calling the news 'fake' and stating the lenders would not exceed Trump's order.
Congressional members and experts raised concerns about increased risks and the fleeting benefits of the bond purchase.
The move reverses nearly two decades of bipartisan consensus to limit the lenders' bond portfolios after the 2008-09 financial crisis.
- Who
- Bill Pulte, Trump's federal housing finance director, and Fannie Mae and Freddie Mac.
- What
- FHFA granted lenders authority to nearly double mortgage bond purchases, raising concerns about risk.
- When
- The change was effective immediately as of January 12.
- Where
- United States, involving federal housing finance agencies and lenders.
- Why
- To try to lower mortgage rates, but critics argue it may increase risks and have fleeting benefits.
- Authority Granted
- FHFA allowed Fannie Mae and Freddie Mac to hold up to $225 billion in mortgage bonds each.
- Previous Cap
- $40 billion per lender.
- Potential Increase
- $170 billion over Trump's initial $200 billion instruction.
- Consultation
- Unclear if Trump or Treasury Secretary Scott Bessent were consulted.
- Congressional Concerns
- Some members of Congress raised concerns about increased risks and fleeting benefits.
- Pulte's Statement
- Denied exceeding $200 billion, called it 'fake news'.
- Fannie Mae and Freddie Mac
- Government-backed lenders subject to additional regulation and lower borrowing costs.
- Potential IPO
- Lenders may boost earnings before an anticipated initial public offering.