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I wouldn't hold up Fannie and Freddie as a model for anything.

• williamcotton 3y ago
  Why not? They’ve created an insane amount of private wealth in the US and are profitable. FHA loans have caused more good than harm.
  • Kiro 3y ago
    For someone outside the US those names are only associated with the financial crisis. I don't even know what they are and honestly thought they were another Lehman brothers that didn't exist anymore, so your comment read like a joke.
    • mattmaroon 3y ago
      If it makes you feel better, most American home owners have a loan that originated with one of them and still don’t know any more about them than you do.
    • JauntTrooper 3y ago
      Fannie Mae (FNMA) and Freddie Mac (FHLMC) are companies that the US federal government set up and sponsors in order to support the mortgage industry and provide liquidity to banks and other financial institutions that provide mortgages to Americans. So if a bank offers a mortgage to a customer and the loan conforms with Fannie and Freddie's underwriting policies, Fannie and Freddie will buy it from them them. They then package some of those loans into a loan portfolio and sell it to fixed income investors. About 70% of US mortgages are supported by Fannie and Freddie.
      • williamcotton 3y ago
        Unfortunately reality isn’t the point of these online exchanges.
• everybodyknows 3y ago
  A model for regulatory capture? https://www.seattletimes.com/business/franklin-raines-to-pay-247-million-to-settle-fannie-mae-lawsuit/ https://www.seattletimes.com/business/franklin-raines-to-pay...