WASHINGTON—Donald Trump and Joe Biden have divergent views on the federal government’s role in the $11 trillion mortgage market, with potential consequences for the price of home loans for millions of Americans.
In keeping with the Republican Party’s emphasis on limiting the government’s role in the economy, the Trump administration aims to return two giant mortgage-finance companies—Fannie Mae and Freddie Mac—to private hands over the next couple of years.
A Biden administration, in contrast, would be in no hurry to release the companies, which the government has controlled since 2008. Instead, the Democratic former vice president would focus on ways to use the companies to boost housing affordability and promote homeownership.
Here is a look at the competing policies and what either approach might mean for housing-market consumers.
What’s at stake for borrowers?
Mortgage affordability could be affected. The Biden camp argues that the Trump administration’s approach