Freddie and Fannie are at the very root of our dilemma.
That and the community reinvestment act.
We are in a web of BS.
No, they’re not. They’re contributing factors, but they’re not “at the root” of the problem, and the CRA has been studied repeatedly since 2009 and there’s no statistical evidence that the CRA was anything other than a minor issue in the debt bubble.
90+ day default rates on prime, conforming mortgages are now running higher than Fannie/Freddie mortgages.
The data is easy to find. Why some people continue to believe such nonsense is beyond belief.
http://www.newyorkfed.org/creditconditions/