Freddie Mac and Fannie Mae have been a Public/Private partnership between the US Government and the Financial Sector for decades, and for Banks it became an appendage of its Business Model. So, before folks start screaming that the Government can't do anything right, there was nothing wrong with Fannie Mae until the Private Sector got a piece of the action and corrupted it. Freddie Mac was created as a "competitor" for Fannie Mae once it went "Free Market" ... so of course these organizations are now a mess.
Prior to the last crash, Freddie Mac and Fannie Mae were just places the Banking Industry laundered toxic mortgages, that is why these agencies were at the center of the crisis when the crash occurred.
If you sever the influence of the Private Sector from Fannie Mae and Freddie Mac, and regulate them responsibly, they won't wind up a risk to US Taxpayers again, and the housing sector would wind up being more stable and robust.
Read the Article at HuffingtonPost
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