[appeal2]

It has been reported that Fannie and Freddie own 70 percent of the mortgages in the USA. Originally they would take mortgages, which met certain criteria, from lenders and package them into securities and sell them to investors. Towards the end of the 1990’s, they started accumulating these mortgages and just started selling debt to the markets. I remember when they passed 1 trillion in assets and Freddie passed 700 million. The excuse they gave was that they were simply managing their portfolios to maximize income. In reality they were making loans so toxic that they didn’t dare sell them to any investors as they would certainly be guilty of fraud. And yes Virginia, CRA caused many of these loans to be made in the first place.

[dennisw]

And yes Virginia, CRA caused many of these loans to be made in the first place.

That great Democrat Party institution called Fannie Mae was a gigantic vacuum cleaner busy vacuuming up these crummy loans and bundling them. Most of these lousy mortgages would not have been made if not for Fannie Mae buying them up, taking them off the hands of the mortgage makers. Who mostly knew these home loans were drek and did not want them to be on their books for more than ten minutes