Michael Burry: Trump's decision to waive Fannie Mae and Freddie Mac debt could trigger US housing crisis

Michael Burry stated that if US President Trump decides to waive approximately $193 billion in nominal debt for Fannie Mae and Freddie Mac, it could trigger a housing crisis in the United States. These two government supported GSEs guarantee the vast majority of mortgage loans in the United States. Michael Burry stated that debt forgiveness will cause the stock prices of the two companies to rise 3 to 4 times in the short term and 6 to 7 times in the long term; If not exempted, the stock price may fall to single digits. According to SEC documents, Fannie Mae's non-performing loan write off amount increased from $61 million to $243 million, and its largest mortgage partner was forced to repurchase $221.6 million in fraudulent loans.