FHFA Under Pulte Raises Fannie, Freddie Mortgage Bond Portfolio Caps to $225B Each

The Federal Housing Finance Agency, led by Director Bill Pulte, has unilaterally raised the cap on mortgage bond holdings for Fannie Mae and Freddie Mac to $225 billion each, effective immediately as of January 12, 2026. This move grants the government-sponsored enterprises the authority to nearly double their holdings beyond a previous $200 billion initiative ordered by President Trump, introducing significant new risk. The change, communicated via email and reversing post-2008 crisis limits, allows the lenders to adjust portfolios more aggressively. Pulte called the report "fake news," stating the entities would not exceed $200 billion, while the FHFA later said they "will not be allowed to go beyond the president’s buy." Critics, including Senator Elizabeth Warren, warn the policy may not sustainably lower mortgage rates and could increase systemic risk.