Michael Burry: Trump's decision to exempt Fannie Mae and Freddie Mac debt may trigger a US housing crisis

Michael Burry stated that if US President Trump decides to forgive approximately $193 billion in nominal debt for Fannie Mae and Freddie Mac, it could trigger a US housing crisis. These two government-supported GSEs guarantee the vast majority of US mortgages. Michael Burry said that debt forgiveness would cause the share prices of these two companies to rise 3 to 4 times in the short term and 6 to 7 times in the long term; if not forgiven, their share prices could fall to single digits. According to SEC filings, Fannie Mae's charge-offs of non-performing loans increased from $6.1 million to $243 million, and its largest mortgage partner was forced to repurchase $221.6 million in fraudulent loans.