The David Greene Show Mortgage Monday | Fannie and Freddie Potential Decoupling | Episode 100
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Nov 24, 2025 Christian Bachelder, a mortgage professional and broker, dives into the potential decoupling of Fannie Mae and Freddie Mac from government ownership. He discusses how this change could lead to more expensive loans and increased risks of predatory lending. They highlight the importance of experienced brokers in navigating these challenges and reflect on the benefits of affordable homeownership we've enjoyed. With alarming parallels to pre-2008 practices, they emphasize the need for integrity in the mortgage industry as oversight possibly weakens.
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How GSEs Make U.S. Mortgages Accessible
- Fannie Mae and Freddie Mac set and enforce underwriting rules that enable accessible, low-down-payment 30-year fixed mortgages in the U.S.
- That government-backed structure is why ordinary Americans can buy homes with small down payments and low rates.
U.S. Mortgages Are Exceptionally Subsidized
- Other countries rarely offer 30-year fixed low-down-payment loans and often require much larger down payments and shorter terms.
- The U.S. mortgage subsidy model is unusual and materially benefits buyers but is not a free-market norm.
Securitization Keeps Mortgage Liquidity Flowing
- Fannie and Freddie pool loans into securities that recycle capital into new mortgages and keep market liquidity flowing.
- That securitization makes it easier for lenders to issue more loans and sustains homebuying capacity.