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.
Read More Trending Articles:
- Bullish Puma Investor Talks Neratinb FDA Panel Win, Next Steps and Takeout Potential
- Biotech Movers: Positive Phase Three Results For Roclatan Send Aerie Shares Soaring
- Best Buy's Stock Is Blowing Up After Massive Earnings Beat - What You Quickly Need to Know
- Staples Rejects Takeover Bid From Cerberus Capital
- Step Away From the Ledge: Cramer's 'Mad Money' Recap (Wednesday 5/24/17)