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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