Home sales off-the-charts

[EdwardBaiamonte]

FactWatch Fannie and Freddie were followers not leaders in mortgage frenzy Center for Public Integrity:

• In addition to buying loans directly, Fannie and Freddie also purchased mortgage-backed securities produced by Wall Street. From 2002 to 2007, Wall Street produced more than $3 trillion dollars in securities backed by subprime mortgages and so-called “Alt-A” mortgages, another class of risky home loans. During that time, Fannie and Freddie purchased 23 percent of Wall Street securities underpinned by subprime and Alt-A loans, according to Inside Mortgage Finance.

Fanny/Freddie purchased 23% of everything Wall Street produced according to your own article??? That does not include what Fanny Freddie lied about nor what they bought directly. In the end they had 77% of all Subprime and alt A mortgages which is not surprising giving that their mandate called for 56% of all their loans being Alt A or subprime. It led barney Frank to say this:


Barney Frank: "I hope by next year we'll have abolished Fanny Freddie... it was a great mistake to push lower income people into homes they couldn't afford and couldn't really handle once they had it"



"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."-Barney Frank