If you’re dreaming of buying a home or investing in real estate, the mortgage world can feel like a labyrinth of red tape, high stakes, and endless fine print. But big changes are brewing, and they could either open doors or slam them shut. At Jhenesis Mortgage, Stacy Ann Stephens and her team are here to guide you through this wild ride, helping you turn pain points into opportunities. Whether you’re a first-time homebuyer, a seasoned investor, or looking to refinance, understanding the seismic shifts involving Fannie Mae, Freddie Mac, and a bold new crypto policy could be your ticket to success. Let’s dive into the chaos, unpack the history, and explore how you can come out on top.
The Fannie Mae and Freddie Mac Saga: From Heroes to Government Wards
A Brief History of Mortgage Titans
Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are the backbone of America’s housing market. Created by Congress—Fannie in 1938 during the Great Depression and Freddie in 1970—these government-sponsored enterprises (GSEs) were designed to make homeownership accessible by injecting liquidity into the mortgage system. They don’t lend directly to you or me; instead, they buy mortgages from banks, bundle them into mortgage-backed securities (MBS), and sell them to investors. This process frees up cash for lenders to issue more loans, keeping the housing market humming. With a staggering $7.8 trillion in assets under management as of 2024, they back nearly half of the U.S.’s $12 trillion mortgage market. That’s power
But here’s where it gets messy. In the early 2000s, Fannie and Freddie got reckless, diving into risky Alt-A and subprime mortgages. When the 2008 housing bubble burst, home values tanked, defaults skyrocketed, and these giants lost billions. The federal government stepped in with a $187 billion bailout, placing both under conservatorship in September 2008. This meant the Federal Housing Finance Agency (FHFA) and the U.S. Treasury took control, injecting cash in exchange for senior preferred stock and warrants on 80% of common stock. The goal? Stabilize the housing market and protect taxpayers. Since then, they’ve paid back $301 billion to the Treasury, turning a tidy profit for Uncle Sam, but they’re still under government control.
Get more: For investors and homebuyers, the 2008 crash was a nightmare—foreclosures, tight credit, and sky-high rates. If you’re worried about market stability or getting approved for a loan, Jhenesis Mortgage can help. Stacy Ann Stephens specializes in investor loans and refinancing, finding creative solutions to get you funded even in tough markets.
Privatization: A Game-Changer or a Risky Gamble?
The Push to Go Private
Fast-forward to 2025, and the Trump administration is itching to cut Fannie and Freddie loose from government control. President Trump and FHFA Director Bill Pulte have floated plans to take these giants public, potentially through a massive initial public offering (IPO) that could dwarf Saudi Aramco’s $26 billion debut. Why? Privatization could reduce the government’s $340 billion stake, free up capital, and shrink the federal balance sheet. But it’s not all rosy.
Who Benefits?
- Hedge Funds and Big Investors: Billionaires like Bill Ackman and John Paulson, who’ve held Fannie and Freddie shares since the early 2010s, could see massive windfalls. Shares have already soared—Fannie’s up 500% and Freddie’s up 400% since Trump’s 2024 election. If the government converts its senior preferred stock to common stock or writes it off, these investors could cash in big.
- The Government: Selling its stake could net the Treasury hundreds of billions, a tempting prize amid fiscal deficits. But if all preferred stock becomes common, the government’s guaranteed dividends disappear, and its return hinges on volatile stock prices.
- Homebuyers? Not So Fast: Without the implicit government guarantee, investors might see Fannie and Freddie’s MBS as riskier, demanding higher returns. This could push mortgage rates up by 60-90 basis points, making your dream home pricier. For investors, higher rates could mean tighter margins on rental properties.
Types of Shares
- Common Stock: Traded over-the-counter (OTC) as FNMA (Fannie) and FMCC (Freddie), these are held by private investors but were nearly wiped out in 2008. They’ve surged recently on privatization hopes but remain speculative.
- Preferred Stock: The Treasury holds senior preferred stock with a 10% dividend, giving it priority over common shareholders. Warrants on 80% of common stock give the government massive control. Privatization could dilute these holdings, shifting power to private investors.
- Junior Preferred Stock: Held by private investors, these were devalued in conservatorship as dividends were suspended. A privatization deal could restore their value, benefiting hedge funds and speculators.
Get more: Worried about rising mortgage rates or missing out on investment opportunities? Jhenesis Mortgage can lock in competitive rates for purchases or refinancing, helping you stay ahead of market shifts. Stacy Ann’s expertise in investor loans ensures you maximize returns, whether you’re flipping or holding properties.
Crypto as a Mortgage Asset: Bold Move or Risky Bet?
Bill Pulte’s Crypto Bombshell
In June 2025, FHFA Director Bill Pulte dropped a bombshell: Fannie Mae and Freddie Mac must propose ways to consider cryptocurrency holdings as assets when assessing mortgage risk, without requiring conversion to U.S. dollars. Only crypto on U.S.-regulated exchanges (think Bitcoin, Solana) qualifies. This aligns with Trump’s vision to make America a “crypto capital” but has sparked heated debate.
What This Looks Like
- How It Works: Traditionally, banks only count crypto as an asset if you sell it for cash. Pulte’s order means your Bitcoin or Solana could count toward reserves, boosting your creditworthiness without liquidation. This could help crypto-rich buyers qualify for bigger loans.
- Advantages:
- More Access: If you hold crypto but lack liquid cash, this could make homeownership possible. Only 1% of homebuyers used crypto proceeds for down payments in 2023-2024, so this opens doors.
- Market Boost: Recognizing crypto could pump liquidity into housing, especially for younger, tech-savvy buyers.
- Innovation: It signals a modernized mortgage system, treating crypto like stocks or bonds.
- Risks:
- Volatility: Crypto prices swing wildly—Bitcoin dropped 20% in a week in 2023. If your portfolio tanks post-approval, you’re still on the hook for payments.
- Regulatory Gaps: Crypto’s unregulated nature raises red flags. If exchanges fail or scams proliferate, lenders could face losses.
- Higher Rates: Lenders might charge more to offset crypto’s risk, hiking costs for borrowers.
Get more: Got crypto but struggling to qualify for a mortgage? Jhenesis Mortgage can help you leverage your assets—crypto or otherwise—to secure financing. Stacy Ann’s team stays ahead of trends, ensuring you get the best terms in this evolving landscape.
Bill Pulte: Conflict of Interest or Strategic Genius?
Who Is Bill Pulte?
Bill Pulte, FHFA director since March 2025, is a polarizing figure. Grandson of the founder of Pulte Homes, the third-largest U.S. homebuilder, he left the family business to run a private equity firm and became a “meme-stock impresario,” hyping stocks like GameStop. Now, he’s chair of both Fannie and Freddie’s boards, having ousted 14 of 25 members in a power move. His spouse holds $500,000-$1 million in Bitcoin and Solana, raising eyebrows about his crypto push.
Conflict of Interest?
Pulte’s ties to Pulte Homes and his crypto holdings scream potential conflict. As FHFA director, he oversees the GSEs that buy mortgages from lenders, including those financing Pulte Homes’ properties. His crypto order could inflate home prices by qualifying more buyers, indirectly boosting homebuilders like Pulte Homes. Critics, including Senate Democrats, argue this prioritizes “billionaire campaign contributors” over homeowners, especially since hedge funds with GSE shares (like Bill Ackman’s) stand to gain from privatization.
Investor Advantage
For real estate investors, Pulte’s moves signal opportunity:
- Privatization Play: If Fannie and Freddie go public, their stock could soar. Savvy investors could buy FNMA or FMCC shares now, betting on a windfall.
- Crypto Edge: If you hold crypto, you could qualify for larger loans, letting you snap up investment properties before rates rise. Act fast—Jhenesis Mortgage can pre-approve you to move quickly.
- Market Timing: Privatization could tighten lending standards, squeezing out less-qualified buyers. This might cool competition, letting investors snag deals.
Get more: Feeling stuck in a competitive market or worried about conflicts skewing the system? Stacy Ann Stephens at Jhenesis Mortgage cuts through the noise, offering tailored strategies for investors to capitalize on these shifts, from crypto-backed loans to refinancing existing portfolios.
Why This Matters to You
Whether you’re a first-time buyer, a landlord, or a flipper, these changes hit your wallet. Privatization could raise mortgage rates, making that dream home or rental property costlier. Crypto as an asset could unlock financing but risks volatility. Pulte’s dual role raises trust issues, but it also signals a market ripe for disruption. At Jhenesis Mortgage, we turn these challenges into wins. Stacy Ann Stephens, with her deep expertise in investor loans and refinancing, will craft a plan to keep you ahead—whether it’s locking in a low rate before privatization or using your crypto to secure a loan.
Get more with Jhenesis Mortgage home loans. Contact Stacy Ann Stephens today:
Cell: 203-910-5549
Office: 407-630-9766
Email: [email protected]
Website: jhenesismortgage.com