February 27, 2025

Wyden, Merkley, Colleagues Press Feds on Threat of Rising Housing Costs from Plan to Reprivatize Fannie Mae and Freddie Mac

Oregon senators: Privatization a giveaway for hedge funds, wealthy investors; could hurt homebuyers

Washington D.C.—U.S. Senators Ron Wyden and Jeff Merkley said today they have joined Senate colleagues to press the Department of Housing and Urban Development on whether its plan to reprivatize Fannie Mae and Freddie Mac will make mortgages more expensive. 

“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 hard working Americans,” the senators wrote HUD Secretary Scott Turner, who said right after his confirmation that he would act as “quarterback” in the Trump Administration’s plan to reprivatize the multi-trillion dollar companies.

“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,” they wrote. “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 senators asked 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.

The letter was led by U.S. Senator Elizabeth Warren, D-Mass., and Minority Leader Chuck Schumer, D-N.Y. In addition to Wyden and Merkley, the letter was also signed by Senators Richard Blumenthal, D-Conn., Lisa Blunt Rochester, D-Del., Cory Booker, D-N.J., Dick Durbin D-Ill., Andy Kim, D-N.J., Chris Murphy, D-Conn., and Jack Reed, D-R.I. 

The full text of the letter is here.