Trump Team Tips Hand About Healthcare, GSEs

WASHINGTON, DC–President-elect Donald Trump's transition team is starting to release the outlines of what the Trump Administration hopes to accomplish. For the real estate community, it has released a few clues about the future path of the GSEs and how it intends to replace the Affordable Care Act.

The GSEs

It has been the market's opinion that a Trump Administration would, if not push Fannie Mae and Freddie Mac towards privatization, at least make shareholders in the GSEs whole again. Since the GSEs were placed in conservatorships, profits have been routinely swept back into the US Treasury to the chagrin of shareholders, which have been challenging this in court to little avail.

Trump never talked about housing finance reform on the campaign trail, according to Bloomberg, which also noted that the Republican Party platform called the mortgage companies a “corrupt business model” and said “the utility of both agencies should be reconsidered as a Republican administration clears away the jumble of subsidies and controls that complicate and distort home-buying.”

It has been unclear whether Trump would move to privatize the GSEs or simple revamp the profit-sweeping rules but a new appointment to his transition team indicates there will be some kind of action.

Ohio Republican Ken Blackwell has been tapped to lead his domestic transition team.  He has has held a number of political positions, including serving as an undersecretary at the US Department of Housing and Urban Development. He is also known for his distaste for the Treasury arrangement, calling it a “theft of private property.” in an op-ed in 2014.  (Hat Tip to MarketWatch for spotting the Op-Ed)

When his appointment was announced people took to Twitter asking him to give GSE shareholders some relief.

@kenblackwell Kenneth, will Fannie Mae shareholders finally get justice under President Trump???

— Anonymous (@darkhorse1984) November 11, 2016

@kenblackwell GSE pref. shareholder since '09. Private little guy counting on rule of law. Congrats, sir.

— Joseph Slechta (@slechta_joseph) November 10, 2016

Healthcare

On Thursday the Trump transition team revealed a little — about 300 words worth — on what he plans to do with healthcare.  Two takeaways that are admittedly pure conjecture based on what is posted: the Affordable Care Act may not be automatically repealed based on the following:

The Administration recognizes that the problems with the U.S. health care system did not begin with – and will not end with the repeal of – the ACA.  With the assistance of Congress and working with the States, as appropriate, the Administration will….

However the end goal sounds like the previous system enhanced with some past Republican policy positions.

To maximize choice and create a dynamic market for health insurance, the Administration will work with Congress to enable people to purchase insurance across state lines.  The Administration also will work with both Congress and the States to re-establish high-risk pools – a proven approach to ensuring access to health insurance coverage for individuals who have significant medical expenses and who have not maintained continuous coverage.

In order to meet the needs and demands of the changing healthcare industry, real estate professionals need to adapt their strategies to new circumstances. Join us at RealShare Healthcare Real Estate on Dec. 7 and 8 for insights on succeeding in both the right markets and product types as well as navigating and finding opportunities in the more challenging ones. Learn more.

WASHINGTON, DC–President-elect Donald Trump's transition team is starting to release the outlines of what the Trump Administration hopes to accomplish. For the real estate community, it has released a few clues about the future path of the GSEs and how it intends to replace the Affordable Care Act.

The GSEs

It has been the market's opinion that a Trump Administration would, if not push Fannie Mae and Freddie Mac towards privatization, at least make shareholders in the GSEs whole again. Since the GSEs were placed in conservatorships, profits have been routinely swept back into the US Treasury to the chagrin of shareholders, which have been challenging this in court to little avail.

Trump never talked about housing finance reform on the campaign trail, according to Bloomberg, which also noted that the Republican Party platform called the mortgage companies a “corrupt business model” and said “the utility of both agencies should be reconsidered as a Republican administration clears away the jumble of subsidies and controls that complicate and distort home-buying.”

It has been unclear whether Trump would move to privatize the GSEs or simple revamp the profit-sweeping rules but a new appointment to his transition team indicates there will be some kind of action.

Ohio Republican Ken Blackwell has been tapped to lead his domestic transition team.  He has has held a number of political positions, including serving as an undersecretary at the US Department of Housing and Urban Development. He is also known for his distaste for the Treasury arrangement, calling it a “theft of private property.” in an op-ed in 2014.  (Hat Tip to MarketWatch for spotting the Op-Ed)

When his appointment was announced people took to Twitter asking him to give GSE shareholders some relief.

@kenblackwell Kenneth, will Fannie Mae shareholders finally get justice under President Trump???

— Anonymous (@darkhorse1984) November 11, 2016

@kenblackwell GSE pref. shareholder since '09. Private little guy counting on rule of law. Congrats, sir.

— Joseph Slechta (@slechta_joseph) November 10, 2016

Healthcare

On Thursday the Trump transition team revealed a little — about 300 words worth — on what he plans to do with healthcare.  Two takeaways that are admittedly pure conjecture based on what is posted: the Affordable Care Act may not be automatically repealed based on the following:

The Administration recognizes that the problems with the U.S. health care system did not begin with – and will not end with the repeal of – the ACA.  With the assistance of Congress and working with the States, as appropriate, the Administration will….

However the end goal sounds like the previous system enhanced with some past Republican policy positions.

To maximize choice and create a dynamic market for health insurance, the Administration will work with Congress to enable people to purchase insurance across state lines.  The Administration also will work with both Congress and the States to re-establish high-risk pools – a proven approach to ensuring access to health insurance coverage for individuals who have significant medical expenses and who have not maintained continuous coverage.

In order to meet the needs and demands of the changing healthcare industry, real estate professionals need to adapt their strategies to new circumstances. Join us at RealShare Healthcare Real Estate on Dec. 7 and 8 for insights on succeeding in both the right markets and product types as well as navigating and finding opportunities in the more challenging ones. Learn more.