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Fannie and Freddie
Are we in for a major mortgage shakeup?
#70
WELCOME
Our hearts are with the LA-area communities, residents, and agents affected by the tragic wildfires that continue to sweep across the region. The devastating wildfires are some of the most destructive blazes in California’s history, displacing thousands of residents and causing billions of dollars in damage. But they’re also bringing the LA real estate community together in a historic way.
Earlier this week, a group of more than 45 of LA’s top real estate professionals, led by luxury agents Ben Belack and Jason Oppenheim, united to call for looser rebuilding regulations, stronger insurance protections, and policies to help jumpstart recovery efforts.
Dozens of agents, including Ben, Jason, and our own Tracy Tutor, James Harris, and David Parnes, have also come together to offer extra support—like nearby homes for lease and pro bono services—to help fire victims in every way possible.
With several fires still burning across the region, the fight to contain the damage isn’t yet over. But together, Los Angeles will rebuild.
Jonathan Spears, founder of the Spears Group, a top luxury real estate team out of Northwest Florida, operates in a niche market where vacation rentals are making investors millions every season. From the ‘Redneck Riviera’ to the ‘Hamptons of the South,’ catch Glennda’s full interview with Jonathan to learn how he found a rare opportunity in a transitioning local market—and leveraged it to build a top-performing team of sharp real estate agents and savvy advisors.
TRACK THE MARKET: The Path to Privatization
After over 15 years under government conservatorship, mortgage giants Fannie Mae and Freddie Mac may finally be taken private once again. Recent updates from the U.S. Treasury and the Federal Housing Finance Agency (FHFA) have outlined a potential roadmap for the release of the lenders, sparking a mostly positive response from investors and sending their stocks soaring.
As the backer behind nearly 70% of US mortgages, privatizing Fannie and Freddie could have a major impact on the housing market. Here’s how:
If privatization moves forward without a federal guarantee, Fannie and Freddie’s borrowing costs could rise, leading to higher mortgage rates. This could make homeownership less affordable and dampen buyer activity.
Without a clear plan for privatization, keeping the financial market stable through the transition may be a challenge, especially if lending standards or processes change.
On the other hand, privatization has the potential to streamline certain processes and reduce some of the regulatory bottlenecks that currently exist under federal control, making transactions smoother. It may also increase competition among private entities, which could lead to new loan products that better serve niche markets.
It’s too early to tell whether the plan to take Fannie Mae and Freddie Mac private again will succeed. The process has faced major headwinds politically, economically, and logistically in the past, and leaders are divided on whether the benefits are worth the overhaul. But the roadmap is a starting point, and with interest increasing as President-elect Trump prepares for a second term, expect privatization to be one of the next major real estate talking points.
DIVE IN
The Friday Five
📖 Real talk ROI. Why bottom line profit is a better metric to track—and how to boost it.
👀 Liza Minnelli’s mansion. Get an insider tour of the time capsule residence owned by Liza, Christina Aguilera, and for $7.995M, maybe you!
👀 Insurance uncertainty. How home insurance providers are handling coverage amid increasing crises.
💡Seeking shelter. Quick-share resources for those impacted by the LA wildfires.
💡By executive order. How Governor Newsom is protecting firestorm victims from predatory land speculators.
What’s Next in Estate Elite
Estate Elite gives you direct and exclusive access to the insights, strategies, and mentorship opportunities it takes to become a top agent in your market. Whether you’re looking to refine your personal brand, master negotiations, or build a strong team, the expert advice of Glennda Baker, Josh Flagg, Tracy Tutor, James Harris, and David Parnes can help you get there.
Next week, don’t miss our two live Q&A sessions:
January 21st, 3PM ET: Getting Comfortable on Camera and Choosing the Right Platform with Glennda Baker
January 23rd, 3PM ET: Creating Social Media Content that Resonates with Audiences, with Josh Flagg.
And don’t forget—the first 50 new members to join Estate Elite will get 25% off their 2025 membership.
With weekly live events, exclusive mastermind sessions, and expert coaching, Estate Elite delivers everything you need to elevate your real estate career. Sign up here to claim your 25% discount and start landing bigger, better opportunities.
WHAT’S NEW FROM ESTATE MEDIA
Top Celebrity Real Estate News
Even over the holidays, celebrities from California to Florida were making waves—sometimes literally—with their latest real estate moves.
In Palm Beach, Sylvester Stallone announced plans to build an underwater barrier around his multi-million-dollar home to keep seaweed and debris from the property. But local residents don’t think the cover story adds up—and are fighting to block the project. And across the country, Jim Carrey finally found a buyer for his prime Brentwood home on two sprawling acres, which sat on the market for nearly two years. Catch the biggest headlines and Scott’s rapid takes in the latest episode and drop your reaction to the news in the comments below.
FEATURED LUXURY LISTING
TIPS & TAKEAWAYS
The Honest Truth
Pairing clear local insights with realistic advice helps to position you as a resource and advisor in your market. Read how Arizona agent Shannon Gillette gives her audience the honest truth about market conditions, inventory levels, and how her team is handling it all in her refreshingly candid post, here.
HANGS & HAPPENINGS
Inman Connect | NYC | January 22-24, 2025. Grow your network, learn from the best in business, and get inspired through multiple networking opportunities and breakout sessions from industry pros like Rayni Williams, Mauricio Umansky, and Jimmy Burgess.
RETCon | Las Vegas, NV | March 10-12, 2025. RETCon is a must-attend event for real estate technology and innovation professionals. The conference focuses on PropTech and RealTech solutions, trends, automation tools, AI advances, and more, and gives agents and industry pros a place to learn, network, and stay competitive.
REALTOR Broker Summit | Louisville, KY | April 8-9. Get leadership and marketing insights tailored to brokers, real estate leaders, and teams ready to refine their strategies and jump ahead of the competition. Register for two days packed with workshops, presentations, meet-and-greets, and more.
Before we go…
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