As with most large corporations that lose site of the "little people" they are supposed to be helping, Fannie Mae and Freddie Mac have grown so large and focused on profits that they have begun to use unsavory business practices. It's time that someone step in and make it so individuals have representation.
The bottom line is the stupid decisions that they made regarding the loans they produced is what brought us to the point that we are in with the economy, if we want to see the economy come back, we need to focus on choices that help the economy and not the bad loans.
Fannie Mae and Freddie Mac had been responsible for a good chunk of the loans that sent the US American into the tail spin that it has been. If the structure was less about signing loans that had been bad news we would not be in the situation that we have been in today.
Fannie Mae and Freddie Mac are largely responsible for the downfall of the American economy in the mid 2000s. While they are not entirely responsible, had they been structured properly and consistently, such issues would have been considerably less. The repercussions were detrimental. Both institutions need to be restructured to ensure such problems never happen again.
Both Fannie and Freddie are Government Insurance/Investment agencies. They set guidelines by which Banks/Finance Companies (the institutions that actually makes the loans) are to follow, if these Financial Institutions want their Home Loans insured by the Government. The BANKS and Other Lending Companies Seen an opportunity to Cheat, by fiddling with loan documents to make them Appear to meet those guidelines. Fannie and Freddie kept their end of the bargain and Insured/Bought those loans; which many turned out to be erroneous.
Your Bank and Mine are the blame for their Lies and Deceit. And, it is why many of them have been Sued Successfully by Fannie and Freddie and have had to pay back Millions of dollars to Fannie and Freddie and even buy back some of their Deceptive Loans...... Politicians including, unfortunately, President Obama, continue to overlook this fact and refuse to "Wind Down" Banks but seek, instead, to close two of the Gold Standards that make housing for ALL of us possible of us.
R. Johnson, Portland