This Billionaire’s Plan Could Shake Up Home Loans

A billionaire’s bold pitch to fix America’s housing market might reshape how we get mortgages

Author

Mike Ugarte
August 15, 2025 • Estimated Reading Time: 3 minutes

From Wall Street to Your Wallet

It’s not every day that a hedge fund billionaire jumps into the housing crisis conversation with a fix but Bill Ackman just did.

His latest idea?

Merge Fannie Mae and Freddie Mac into one mega mortgage machine and take it public.

Sounds abstract, but here’s why it actually matters for folks here in Pembroke Pines.

Read the article here:
👉 Read the TheStreet.com article here

I photographed the New York Stock Exchange building in 2012—such an iconic place right in the heart of Wall Street. The massive columns and the huge American flag made it feel like I was standing in front of history itself. A quick moment, but one I still remember.

Big Idea in Plain English

Here’s a quick breakdown of what’s in the article:

  • What’s being proposed? Merge Fannie Mae and Freddie Mac, the two government backed giants that buy up most of the home loans in America into one company, then make it public.

  • Why it could help: Ackman says this would reduce costs, streamline regulation, and most importantly lower mortgage rates.

  • Why it’s risky: Putting all the mortgage eggs in one basket could make the system more fragile. If the new giant fails, it’s a bigger mess for everyone.

  • Short-term impact: Experts warn that just talking about it could cause temporary spikes in mortgage costs as investors react.

  • Long-term vision: If done right, it could lower guarantee fees by 10–25 basis points. That might shave some dollars off monthly payments, not a game changer, but helpful.

Bottom Line:

This idea won’t solve inventory shortages, sky-high prices, or builder slowdowns but it’s one of the few serious proposals that could shift the way mortgages work in America.

For now, it’s just a pitch, but with both Bill Ackman and Trump backing some version of it, don’t be surprised if this becomes a headline issue in the 2026 election cycle.

Got a 6%+ mortgage right now?

Don’t hold your breath for relief, but keep your eye on this one as it could shape how affordable homeownership is for the next generation.

What do you think? Is this a good idea or bad idea?