Bill Ackman Urges Trump To Cut Mortgage Rates By Adding Prepayment Penalties

Group 1 - Bill Ackman has proposed a method to lower mortgage rates in the U.S. by introducing prepayment penalties on government-backed home loans [1][2] - The proposal involves Fannie Mae and Freddie Mac offering non-prepayable mortgages, which would require borrowers to pay a penalty for prepayment [2] - Ackman estimates that this change could save borrowers approximately 65 basis points on a 30-year mortgage [3] Group 2 - The proposal is timely as U.S. mortgage rates have been a concern, with recent actions leading to a decrease in the average 30-year fixed mortgage rate below 6% for the first time since 2022 [5] - Ackman has previously suggested merging Fannie Mae and Freddie Mac to minimize mortgage spread risks and unlock value [6]