Trump administration’s plan to spin off mortgage giants Fannie and Freddie faces new uncertainty

Penn IUR's Susan Wachter tells CNN that efforts to spin off Fannie and Freddie appear to have stalled.

If handled poorly, experts warn, an exit from conservatorship could disrupt the market for mortgage-backed securities (MBS) that underpins the US housing finance system. That could push borrowing costs even higher for homebuyers – right when home prices are near record highs and mortgage rates are elevated amid heightened Iran war-fueled inflation concerns.