Fannie Mae has been purchasing conventional mortgages since 1978 and selling them as mortgage backed securities, as does Ginnie Mae and Freddie Mac.
I would guess that most of the mortgages on the properties in the worst-hit neighborhoods were low-dow- payment targetted at low income and moderate income buyers, especially minorities. Wouldn't you>
Ginnie Mae buys the federally guaranteed mortgages. Freddie and Fannie buy mortgages that aren't federally guaranteed. Regardless, this Baker guy wants us to pay off the mortgages of people who don't even have government-backed loans, meaning additional billions on top of what we're already on the hook for. No way in hell that's gonna happen.