Trump housing finance chief OKs more mortgage spending and adds risk for government-backed lenders

Associated Press (AP)CenterEN 6 min read 100% complete by By BRIAN SLODYSKOJanuary 24, 2026 at 02:53 PM

AI Summary

long article 6 min

In January 2026, Federal Housing Finance Agency (FHFA) Director Bill Pulte authorized government-backed lenders Fannie Mae and Freddie Mac to significantly increase their mortgage bond holdings. The move, detailed in an email obtained by the Associated Press, raised the limit each lender could hold from $40 billion to $225 billion. This change potentially allows for a $170 billion increase in bond purchases beyond what President Trump initially directed to lower mortgage rates. The action could introduce new financial risks for the lenders. Neither Pulte nor the FHFA addressed questions regarding the rationale behind the increased spending authority.

Key Entities & Roles

Key Player Opposition Context

Greenland 30% World Economic Forum 30% Davos, Switzerland 30% Associated Press ×240% White House ×350% Fannie Mae 70% Washington ×270% Freddie Mac 70% Bill Pulte ×480% Donald Trump ×390% Federal Housing Finance Agency ×495%

Keywords

mortgage spending 90% government-backed lenders 80% mortgage bonds 70% federal housing finance agency 70% freddie mac 60% bill pulte 60% fannie mae 60% mortgage rates 50% bond purchase 50% risk 50%