Without Googling, does anyone know what the one and only difference is between these 2 disasters? It's slight, it's so slight that its absurd to have 2 separate entities each employing 5,000+ people and gobbling taxpayer funding like it was matter swirling down the accretion disk of a black hole. Fannie was the demon spawn of FDR, Freddie was 1970's Dem Congress contribution to Progressive government. There is no reason why they should be separate entities! They have almost identical mission and structures! "they buy mortgages on the secondary market, pool them, and then sell them as mortgage-backed securities to investors on the open market. Everything else regarding government guarantees, explicit guarantees, implicit guarantees, subsidies and direct government funding is exactly the same for Freddie Mac as it is for Fannie Mae." Fannie Mae vs Freddie Mac - Difference and Comparison | Diffen The one and only difference is that Fannies buys more from thrifts! Why are we paying twice for the exact same mistake?