Furthermore, those GSEs you are complaining about do not even *make* mortgages. (It's private lenders who do so.)
Rather the GSEs buy-up conforming mortgage paper from the private lenders.
Ummm,, Freddie and fannie were the largest buyers of subprime mortgages from 04 to 07,,
In order to curry congressional support after their accounting scandals in 2003 and 2004, Fannie Mae and Freddie Mac committed to increased financing of "affordable housing." They became the largest buyers of subprime and Alt-A mortgages between 2004 and 2007, with total GSE exposure eventually exceeding $1 trillion.
online.wsj.com
Subprime loans are non-Conforming loans, so again you seem to be uninformed.
And this is the whole point, Freddie and fannie created an artificial, governement influenced, and unregulated (thanks Barney frank, chuck u schumer, et al) market. |
