Overview

• President Donald Trump used a Sunday Truth Social post to press Fannie Mae and Freddie Mac to prod large builders to start projects, claiming builders are holding 2 million vacant lots.
• It remains unclear how the government-sponsored enterprises could directly incentivize builders because their core role is buying and securitizing mortgages and setting underwriting standards.
• Fannie Mae and Freddie Mac offer construction-related products that support lenders and homebuyers rather than directly financing builders’ operations.
• HousingWire analyst Logan Mohtashami said builders have too many completed units for sale to justify new permits and argued that lower mortgage rates would be the most effective catalyst.
• Under FHFA Director Bill Pulte, the GSEs have seen board overhauls, executive removals, staff cuts, adoption of VantageScore 4.0, and acceptance of crypto-backed mortgages, as Trump continues pursuing an end to conservatorship.