Senator Rounds oppose Freddie Mac getting involved with mortgages

WASHINGTON, D.C.(KELO)- You could call it “trouble on the home front.”

The Biden Administration is moving ahead with a plan to allow Freddie Mac to guarantee Second Mortgage loans to homeowners.

Senator Mike Rounds calls that a big mistake.

Some estimates say the move could release a trillion dollars into the economy this summer…fueling inflation that’s already too high.

Higher inflation numbers would mean continued higher interest rates for borrowers.

Creighton University Economist Ernie Goss shares his concerns, and says this has been tried before.

Senator Rounds says it’s a risky move that comes at a time of economic trouble.

Senator Mike Rounds says it will also hurt the economy by adding to inflation, which is already too high.

Still, he says stopping it is a tall order.

Observers say similar actions led to the housing bubble and crash that started in 2008, costing taxpayers 187-billion dollars.