Housing Affordability Paradox in Trump's Policy

The **White House Office** is a central organizational component within the Executive Office of the President of the United States (EOP), tasked with supporting the President in managing day-to-day operations, policy formulation, and political affairs. It is headed by the White House Chief of Staff and staffed by senior aides who report directly to the President, including those with titles such as Assistant to the President and Deputy Assistant to the President. These staff members are mostly political appointees without the need for Senate confirmation, allowing the President considerable discretion in shaping the office to suit each administration's priorities[1]. Historically, the White House Office was established in 1939 through Reorganization Plan 1 and Executive Order 8248 to provide immediate assistance to the President. It functions as the nerve center for presidential staff, physically located primarily in the West Wing, and plays a pivotal role in managing the President’s policy agenda, communications, and political strategy. Its flexible organization allows each President to tailor the staff composition and roles according to their governance style and objectives[1]. In the current context of 2025, the White House Office operates under the administration of President Donald J. Trump, who returned to office after the 2024 election. His administration emphasizes rejecting prior policies deemed extremist and focuses on enhancing quality of life, economic growth, and American energy dominance. The administration includes Vice President JD Vance and First Lady Melania Trump, among others, with a Cabinet advising on various governmental functions[4][6]. Recent initiatives linked to the White House’s operational sphere include the establishment of a new **Department of Government Efficiency (DOGE)** aimed at modernizing federal technology and software to boost government productivity. The DOGE agenda is implemented through the renamed United States DOGE Service within the Executive Office, reflecting a concerted push to leverage technology for administrative modernization[5]. Notably, the White House Office also coordinates national security and homeland security functions through the National Security Council staff, underscoring its central role

## Overview Fannie Mae, formally known as the Federal National Mortgage Association (FNMA), is a cornerstone of the U.S. housing finance system, operating as a government-sponsored enterprise (GSE) since its founding in 1938 during the Great Depression[2][5]. Established under the New Deal to expand the secondary mortgage market, Fannie Mae’s mission is to ensure a reliable and affordable supply of mortgage funds nationwide, supporting both homeownership and rental housing[2][5][8]. ## Core Functions Fannie Mae purchases residential mortgages from approved lenders, bundles them into mortgage-backed securities (MBS), and sells these securities to global investors[1][4]. By doing so, it injects liquidity into the mortgage market, allowing lenders to offer more loans at stable rates[1][4][5]. The organization also guarantees the timely payment of principal and interest on these securities, attracting a diverse investor base and helping to lower borrowing costs for American families[1][4]. In the first half of 2025 alone, Fannie Mae provided $178 billion in funding to the housing market and helped 668,000 households buy, refinance, or rent homes[4]. ## History and Evolution Originally a federal agency, Fannie Mae became a publicly traded, shareholder-owned company in 1968, though it retains a congressional charter and operates under federal oversight[2][5]. Its “sibling” organization, Freddie Mac, was created in 1970 to further support the mortgage market[5]. Over the decades, Fannie Mae has played a pivotal role in standardizing mortgage underwriting, pioneering automated underwriting systems (such as Desktop Underwriter), and expanding access to credit for underserved communities[4]. ## Current Status and Key Metrics As of mid-2025, Fannie Mae remains one of the largest financial institutions in the world, with over $4.3 trillion in total assets and a net worth of $101.6 billion[

Freddie Mac, officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise (GSE) established in 1970 to enhance liquidity, stability, affordability, and equity in the U.S. housing market. It operates by purchasing mortgages from lenders, pooling them, and issuing mortgage-backed securities (MBS) to investors, thus facilitating the flow of capital into housing finance and making homeownership and rental housing more accessible to millions of Americans[1][2]. Since its inception, Freddie Mac has helped tens of millions of families buy, rent, or keep their homes, especially supporting middle- and low-income households. In recent years, it has maintained a significant presence in the single-family and multifamily housing markets. For instance, in the second quarter of 2025, Freddie Mac’s mortgage portfolio stood at $3.6 trillion, providing more than $100 billion in liquidity to the housing finance system and assisting over 360,000 families, including more than 100,000 first-time homebuyers[1][3]. Financially, Freddie Mac reported net income of $2.4 billion for Q2 2025 and $2.8 billion for Q1 2025, reflecting strong net interest income driven by mortgage portfolio growth and efficient funding costs, despite some challenges from credit loss provisions and lower non-interest income in multifamily sectors[1][4][6]. Its net worth increased to $65 billion by mid-2025, illustrating robust capital strength and operational resilience[3][6]. Freddie Mac plays a key role in financing affordable rental housing, with federal regulators setting multifamily loan purchase caps to balance market support and private capital participation. For 2025, the cap was set at $73 billion, with a mission-driven minimum of 50%, emphasizing support for affordable and workforce housing[7]. Notably, Freddie Mac remains under federal conservatorship since the 2008 financial crisis but has consistently returned to profitability and capital growth. There i