The Big Idea
Treasury Secretary Steve Mnuchin has said he plans to privatize Fannie Mae and Freddie Mac. But will he really? If he does, there's a great opportunity lurking...
Points To Ponder
- Treasury Secretary Steve Mnuchin said very unambiguously that privatization of Fannie Mae and Freddie Mac are high priorities and can be accomplished quickly
- That was welcomed news to current shareholders, who have been the victim of the Fannie/Freddie bailout in 2008
- If privatization of Fannie Mae and Freddie Mac happen, the market for 30-year fixed rate mortgages will likely disappear
- The reduction of funding will likely cause a temporary diversion of the price of real estate and it's value, thus creating a strong buying opportunity for cash buyers
- Seller-financing-oriented investors stand to fare very well... but Dodd Frank must first be repealed, which is also a Trump objective
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