The Plan to End Home Loans - My Thoughts (Video)

In this 8 Aptil 2025 video, host John Williams talks about home loans.

One of the biggest shifts in the housing market is happening right now. For decades. if you needed a mortgage, it came from a bank and chances were it was backed through a government entity like Fanny May or Freddy Mack, The the  vast majority of home loans today are backed by the federal government fanny. Fanny and Freddy now back about half of new US mortgages. These programs we were told were designed to make housing more affordable, especially for firsttime home buyers but that system is quickly changing.

Today private credit firms, hedge funds, private equity and non-bank lenders are flooding into the mortgage market. Massive  private equity firms like Blackstone and Pium Partners have backed a relatively new breed of homeowner. Tthis growing  industry buys or builds single family homes and then rents them out and they’re not playing by the old rules. In fact private credit has grown from $200 billion in 2009 to at the end of 2023 roughly $2 trillion. That is a 10x growth in 14 years and by 2029 it’s estimated to hit at least $2.6 trillion. What private credit is may be the the buyer is not able to get a loan from a more traditional financing institution and therefore they go to a private credit lender fund. This asset class has  grown from $250 billion in 2010 to around $1.5 trillion today. The private credit market continues to garner significant attention at the same time the government is stepping in to privatize Fanny May and Freddy Mack. President Trump himself has indicated he wants to roll back the government’s involvement in the two companies by making Fanny and Freddy private again. II that happens, there will be major implications for anyone thinking about buying a home in the next couple years. So what does this mean for you? Potentially higher borrowing cost and fewer lending  options and the rise of a renter nation controlled by massive corporate landlords.

This video breaks it all down from the rise of private credit to the privatization of government backed mortgages. How  Wall Street is going to reshape the future of housing.

Let’s start with the basics so what exactly is private credit?

Private credit is when non-bank financial lenders like hedge funds,  asset managers, and private equity firms lend their money directly to the borrower. No traditional bank is involved,  no government guarantees, no FDIC backing. What private credit is just in its simplest form is private loans to privately owned companies privately, owned real estate and  rivately owned infrastructure so it is loans from a source other than deposits usually to privately held businesses. Tthis  market used to be small but after the 2008 great financial crisis, traditional bank lenders started pulling back from riskier  loans and that left a huge gap between lenders and borrowers. Private lenders stepped in and in 2009 private credit was  worth about $200 billion and by 2023, roughly two years ago, worth $2 trillion. That 10x growth is only going to ramp up in  the coming years. A nalysts at McKenzie say this is the next era of lending. Brookfield expects this to hit about $2.6  trillion in the next 4 and 5 years. This isn’t a small side play. Iit’s becoming a core part of global finance and now it’s entering the most personal part of the housing market, residential mortgages.

https://youtu.be/gPzv_wmapyc