February 26, 2025

Senate Democrats Press HUD Secretary Turner on Threat of Rising Housing Costs from Plan to Reprivatize Fannie Mae and Freddie Mac

Senate Democrats Press HUD Secretary Turner on Threat of Rising Housing Costs from Plan to Reprivatizate Fannie Mae and Freddie Mac

Privatization A Giveaway for Hedge Funds, Wealthy Investors; Could Hurt Homebuyers

“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. At a time when so many Americans are struggling with housing costs, we must ask why you are choosing as one of your first priorities a policy that only makes it harder for Americans to afford housing.”

Text of Letter (PDF)

Washington, D.C. – Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, Minority Leader Chuck Schumer (D-NY), and nine other Democratic Senators pressed Secretary of the Department of Housing and Urban Development Scott Turner on whether his plan to reprivatize Fannie Mae and Freddie Mac will make mortgages more expensive. Following his confirmation, Secretary Turner said he would act as “quarterback” in the Trump Administration’s plan to reprivatize the multi-trillion dollar companies. 

“During your confirmation process, you repeatedly spoke of the desire to reduce housing costs, a goal we share. However, right out of the gate, you are actively advocating for policy changes that would likely raise housing costs for hardworking Americans,” wrote the Senators. 

The Senators continued: “Changes to the ownership of Fannie Mae and Freddie Mac would be a monumental undertaking that would affect our entire housing system and touch the lives of homeowners and renters across the country. If mismanaged, ending the conservatorships and Treasury’s role with Fannie Mae and Freddie Mac could make mortgages more expensive, cut off access to mortgage credit, destroy many of the important reforms made over the past 16 years, and compromise our entire housing market and the broader U.S. economy.” 

The Senators also raised concerns that privatization could result in a taxpayer-funded giveaway worth billions for wealthy investors and hedge funds, quoting one investor’s optimism that “Trump and his team will get the job done.”

The letter’s signatories also include Senators Blumental (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.). The senators asked Secretary Turner to commit to ensuring that any changes to Fannie Mae and Freddie Mac will not result in higher rents or mortgage costs for Americans while rewarding hedge funds and the wealthy.

“Our housing finance system is a complex, multi-trillion dollar market that touches the lives of every American family. 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. We look forward to your prompt and thorough reply on this urgent matter,” wrote the Senators.

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