On January 9, 2026, hedge fund manager Bill Ackman submitted a detailed proposal to the Trump administration and Treasury Secretary Scott Bessent recommending the introduction of graduated prepayment penalties on Fannie Mae– and Freddie Mac–backed mortgages. Under Ackman’s plan, borrowers would face a 2.0% penalty if they repay or refinance within the first year, declining by 0.25 percentage points annually until reaching zero in year eight. Ackman estimates that the measure could reduce the average 30-year fixed mortgage rate by up to 50 basis points, potentially saving homebuyers more than $15,000 over the life of a $300,000 loan. The proposal includes stress-test analyses showing sustained servicing income for Fannie Mae’s guarantee fund and projects a cumulative $4 billion increase in annual fee revenue once fully implemented.

In a companion announcement on January 10, Treasury Secretary Bessent and White House economic adviser Larry Kudlow revealed a $200 billion investment program directing Fannie Mae and Freddie Mac to purchase agency mortgage-backed securities (MBS) through mid-2026. The move is designed to bolster liquidity in the secondary market and drive MBS yields lower; within 24 hours, 30-year agency MBS yields dropped by 35 basis points. The administration’s model forecasts that this intervention will lower benchmark mortgage spreads by roughly 20 basis points, translating into a decline in average U.S. mortgage rates to the mid-3% range. Fannie Mae executives estimate the program could support the purchase of more than 1 million homes over the next 12 months and improve affordability for first-time buyers by reducing monthly payments by as much as $180 on a $250,000 mortgage.