FMT Investment Advisory has been the cutting-edge investment firm all over the Fannie Mae and Freddie Mac story.
Now that the framework for Trump’s #1 policy agenda of tax reform has been hammered out, Fannie Mae and Freddie Mac are about to become the top priority for Trump’s next major policy initiative.
Housing accounts for 1/5th of our entire economy and without the 30-year pre-payable fixed rate mortgage our economy would implode.
And any thinking person also knows that Fannie Mae and Freddie Mac cannot remain in conservatorship with $5 trillion in mortgage guarantees without a drop of capital to buffer against losses, which is what will happen without reform.
So with the 2018 U.S. budget nearing, House Republicans plan to pre-empt these potential nightmares transpiring with their budget proposal:
Our research indicated from day one that there is simply no substitute for Fannie Mae or Freddie Mac. Once Trump surrounded himself with financiers with every intention of doing the right thing for our real estate market and economy, we took our stake in Fannie Mae.
Every indication is that FMT Advisory is about to be right about it all.
Most reports suggest the 10s of billions of earnings these mortgage giants generate that the government has been usurping has been subsidizing Obamacare.
Without these vast funds going to the government, and should Fannie and Freddie be re-privatized, Trump gets a few things: no Obamacare, $200 – $300 billion in government gains when Fannie and Freddie explode to the upside under their proposals (80% ownership stake with the U.S. warrants), the 30-year mortgage remaining in place averting economic disaster, and a restoration of our property rights in our great nation.
Ho ho. It looks like Trump and his team many indeed get it right.