What Are Fannie Mae and Freddie Mac? A Big Change in Home Loans

Marsha Jacobs
Published Apr 1, 2025


Fannie Mae and Freddie Mac are two big companies that help make buying homes more affordable and predictable in America. They are important because they buy home loans from banks and then sell them to investors, making sure that money is always available for people to borrow to buy homes.

But there's been a big shake-up. William Pulte, who was chosen by President Trump to be in charge of the Federal Housing Finance Agency, just fired a lot of leaders at Fannie Mae and Freddie Mac, and has taken over as the chairman of both. He's even stopped some programs that helped people pay for their first homes.

There's talk that the government might sell these two companies to private business owners. Since 2008, the government has been looking after them because they had big money problems during the housing crisis.

If they were sold, the companies wouldn't have the same kind of government support. This means buying a house could get more expensive, especially now when it's already quite hard for people to afford homes.

If Fannie Mae and Freddie Mac are sold, the interest rates you pay on your home loan could go up. This means your monthly mortgage payments would be higher.

Fannie Mae started a long time ago during the Great Depression to help the housing market. Freddie Mac came along later to help more people get mortgages.

These companies make it easier for banks to give loans and for people to get 30-year loans with interest rates that don't change.

Even though this change doesn't affect people who already have a loan, it could make it more costly to buy a home or change your current loan in the future. It also means that when you're buying a home, you might not be able to lock in your interest rate for certain, making the process more stressful and uncertain.

Experts say lots of questions need to be answered before any sale of Fannie Mae and Freddie Mac happens.

So, for now, if you have a mortgage with these companies, nothing changes. But if you're looking to buy a home or refinance your loan soon, you might face a different situation than before.

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Find out if you're eligible for housing support here!

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