"If his (Donald Trump's) Project 2025 agenda is put into effect, it will add around $1,200 a year to the typical American mortgage," Democratic presidential nominee Kamala Harris said during an August rally in North Carolina, building off of a 2015 analysis by economists Jim Parrott and Mark Zandi.
Parrott, a fellow at the Urban Institute, and Zandi, chief economist for Moody's Analytics, concluded that a privatized Fannie Mae and Freddie Mac 'would need to hold more capital against riskier loans ... forcing them to either increase mortgage rates for these borrowers or lend less to them."
Republicans contend the Federal Housing Finance Agency has been overseeing the two firms far too long, stymying competition in the housing finance market while putting taxpayers at risk should another bailout be necessary, like in 2008.
Democrats fear ending the conservatorship would cause mortgage prices to jump since Fannie Mae and Freddie Mac would need to raise fees to make up for the increased risks they would face without government support.
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