Urban Legends of Fannie and Freddie
National Mortgage News, October 27, 2014
By Clifford Rossi
Since Fannie Mae and Freddie Mac entered conservatorship in 2008, there has arisen a sort of urban legend surrounding the role affordable housing played in the mortgage crisis.
One of the perennial issues cited frequently by detractors of the government-sponsored enterprise model exemplified by Fannie and Freddie is that these agencies were conduits for overly aggressive affordable housing goals. This mandate, we are told, contributed greatly to the losses sustained by both companies, eventually leading to their current state of financial limbo known as conservatorship.
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