Trump’s housing legacy: End of mortgage tax break may endure, other policies likely not
By Jeff Ostrowski
One of Trump’s signature policies, phasing out the mortgage interest deduction for middle-class Americans, is likely to endure. Other Trump policies are in line to be reversed by President-elect Joe Biden. Trump’s successor has indicated he’s not as keen on privatizing Fannie and Freddie. And Biden has vowed to overturn Trump’s positions on deregulation and enforcement of housing discrimination rules. … To make Fannie and Freddie financially independent again, Calabria charted a course that calls for them to amass nearly $300 billion in capital, far more than the $35 billion they now hold. “His new capital rule will significantly affect the GSEs,” says Karen Petrou, managing partner of Federal Financial Analytics. One unavoidable bit of fallout: Borrowing costs could rise for American consumers. Petrou expects any increases to be modest, but the pain could mount if mortgage rates rise.