The National Urban League is urging William Pulte, the newly confirmed director of the Federal Housing Finance Agency (FHFA), to complete the privatization of Fannie Mae and Freddie Mac.
The two mortgage companies were privately held until the 2008 housing market crisis, when they were put under a conservatorship. It was supposed to be temporary until Fannie and Freddie could repay their Treasury loans and operate independently again.
Marc Morial, president and CEO of the Urban League, said in a letter to Pulte that he has “the opportunity of a lifetime” to finish the privatization process that began in 2019 under the first Trump administration.
“It’s simply time to move forward,” Morial wrote. “President Trump has tasked his administration, including the FHFA and Treasury, with developing plans to solve the housing crisis facing communities in every state in the nation.”
Privatizing the companies would mean they would be backed by the market rather than the government. This could lead to more competitive market rates. But there are also risks to the privatization, including an initial jump in rates.
Morial said there must be a focus on building more housing, both rentals and homes for ownership. He blasted luxury housing projects and argued the nation has “stopped building for the middle class.”
“We have specific thoughts on a plan to use the proceeds from privatization to build homes for working families, for the forgotten middle class, in addition to those who are hardest hit. The firefighter, the nurse and the teacher with a couple of kids who both commute long distances, so their kids have a decent home. The police officer or the carpenter who still live with their parents because housing costs in the areas they grew up or work are just too high,” Morial said.
Morial is now calling for a meeting with Pulte to discuss the Urban League’s vision for housing investment.
