Don’t forget about the Banksters (ie Gangsters in pin stripe suits) who lobbied to create these monsters in order to eliminate the banks risk. Another example of crony capitalism.
You, sir or madame, are a reactionary.
FNMA was chartered in the 1930's. It was fine until Jimmy Carter and his successors.
I have already said that the original purpose was laudatory - bank liquidity.
Without FNMA and FHLMC, neither your parents, nor you, nor I would have ever owned a home because long-term fixed-rate mortgages on single-family homes were simply not available.
I have also said that the problems were not created by "banksters", but by politicians who eventually pressured a needed conduit into providing social services.
FNMA and FHLMC were once the defining source for prudent mortgage underwriting criteria.
Their thrust was subsequently transmogrified into something other than what they were meant to be by politicians trying to buy votes and accelerated when Democrat operatives went straight from White House to high-level positions in both organizations.
Do you even know who Franklin Raines is?
Let up on the bankers, or as you say "banksters". They are not at fault and the majority of them would like to see a return of the FNMA and FHLMC of old. Not only did those organizations provide liquidity, they provided guidance.