An Autopsy of Fannie Mae and Freddie Mac

I would have question this report.
1) Look who prepared it the FHFA
2) Fannie & Freddie were the single biggest buyer of suprime mortgages in the market accomplished by
purchasing senior bonds in virtually every subprime mortgage securitization
3) Prior to 2008 Fannie & Freddie did not engage in risk based pricing and became the dumping ground
for firms like Countrywide for every barely eligible mortgage that met GSE guidelines.
4) Fannie & Freddie were incredibly leveraged(100 to 1?)so it took very little in the way of defaults
to tank them
5) Fannie & Freddie would guarantee first liens without even considering the second liens thus helping
to create a huge market for second lien mortgages which are sitting on banks books not written down
even though they are worthless in reality

Fannie & Freddie provided a great deal of money that helped fuel the housing bubble and helped legitimize the subprime sector.

Your response was expected and predictable. Again, don't let data get in the way of ideology. The report backs up that Fannie & Freddie were incompetent but in the end a minor player next to unregulated free market players like countrywide who were calling the shots in subprime.

Fannie Mae & Countrywide , Angelo & Franklin perfect together. No better example of the public private partnership now known as Crony Capitalism.