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Treasury Secretary Steve Mnuchin said the Trump administration is considering adding a government backstop to the mortgage market, allowing the government to guarantee certain mortgage securities, reducing the role of federal home loan financiers Fannie Mae  (FNMA) and Freddie Mac (FMCC)

The government guarantee would infuse the trillion dollar mortgage-backed securities market with a steady inflow of liquidity, resulting in low mortgage interest rates. However, it is unclear how the system would react to a reduction in private risk capital during a potential pullback. 

Over on Real Money Jim Cramer give advice to investors looking at how to play the Trump Trade. Get his insights or analysis with a free trial subscription to Real Money.

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