(from Housingwire.com)
Over the weekend, Trump dropped an AI-generated Truth Social pic of himself at the NYSE, teasing “The Great American Mortgage Corporation” and hinting at merging Fannie Mae and Freddie Mac.
The post followed a Wall Street Journal report outlining a $500B plan to take the mortgage giants public, maybe as one combined company. Billionaire Bill Ackman loves the idea, saying a merger could slash costs, boost mortgage-backed securities trading, and pass savings along to borrowers.
Critics say “slow down,” warning a monopoly could kill competition and limit lender choice.
The history here is messy: Fannie and Freddie were set up decades apart to serve different lending channels, but before the 2008 crisis, lenders played them against each other in a fee-cutting race that backfired. Merging them could avoid that risk, or create a new one.
Operationally, there’s a lot of overlap (15,000 employees, $6.5B in admin costs), but actually combining them would require Congress to change their charters. Analysts say that’s not happening by year’s end, no matter what the administration hopes.
Mortgage rates are currently at 6.80% for a 30-year conforming loan, down from earlier this year, but whether a mega-merger would lower them is still up for debate.
Read more here
Ohtani’s Hawaii Drama Goes to Court
(from Yahoo.com)
Los Angeles Dodgers star Shohei Ohtani is facing a new curveball, a Hawaii real estate developer and broker are suing him and his agent, claiming they sabotaged a $240M luxury housing project on the Big Island’s Hapuna Coast.
The lawsuit says Ohtani was brought in for his star power to promote the 14-home development, with plans to buy one himself and build a private training facility.
But the plaintiffs say Ohtani’s agent, Nez Balelo, started making aggressive demands, threatening to pull Ohtani unless concessions were made. Eventually, they allege, the project’s partner dropped them entirely to keep Ohtani happy.
The suit accuses Ohtani and Balelo of abusing their leverage for personal gain, undermining years of work and a marketing plan aimed at the Japanese luxury home market. Neither Ohtani’s camp nor the developer’s partner has commented.
If true, the case blends celebrity endorsements, high-end real estate, and a serious dose of off-field drama , all in a place most people just go to relax.
Read more here
Social Space
Our Top Social Links of the week
Read:
Fix-and-flip market struggles in Q2 due to labor, material challenges – Read here!
Read:
Taylor Swift, Travis Kelce eye luxury real estate in Cleveland, Ohio: What can they get? – Read here!
Read:
Homes are being listed for $1 and selling for much more – Read here!
See:
This $3.2 million Massachusetts home has the coolest pool ever – Listen here!