Senate Democrats have expressed concerns to HUD Secretary Scott Turner regarding the potential impact of his plan to reprivatize Fannie Mae and Freddie Mac. They fear this move could increase housing costs, affecting mortgages and rents, making it more challenging for Americans to afford homes.
In a letter led by Senator Elizabeth Warren, the Democrats questioned Turner's priorities, especially given his earlier statements about reducing housing costs. They wrote, "Reprivatization of Fannie Mae and Freddie Mac threatens to raise the cost of mortgages and rent and make it even harder to access credit for purchasing a home."
The Senators argued that changing the ownership structure of these institutions would be significant, impacting homeowners and renters nationwide. They warned that mismanagement could lead to higher mortgage expenses, reduced access to credit, and potentially harm the broader U.S. economy.
Additionally, they raised concerns about a possible taxpayer-funded windfall benefiting wealthy investors and hedge funds. One investor expressed optimism about Trump's administration completing the task: "Trump and his team will get the job done."
The letter was also signed by Senators Blumenthal (D-Conn.), Blunt Rochester (D-Del.), Booker (D-NJ), Durbin (D-Ill.), Kim (D-NJ), Merkley (D-Ore.), Murphy (D-Conn.), Reed (D-RI), and Wyden (D-Ore.). They urged Secretary Turner to ensure that any changes do not result in increased housing costs or benefit wealthy investors disproportionately.
"Our housing finance system is a complex, multi-trillion dollar market that touches the lives of every American family," they wrote. "It is critical that any effort to reprivatize Fannie Mac and Freddie Mac does not result in windfalls for wealthy investors while raising housing costs for American families."