Without them, there would be no fixed or adjustable-rate mortgage loans with 5, 10, 15, 20 or 30 year terms.
That was a good idea.
Unfortunately, politics took control and politicians starting micro-managing what was happening, based on race, ethnicity, income, etc. and the whole mess collapsed.
I once worked for a quasi-governmental agency that bought mortgage loans. The board of directors kept asking me why we made hardly any loans in one city, county or another.
I explained that we don't "make" loans. We "buy" loans. If there were no sales or qualified loan applicants, that was not our fault.
You would have thought I shot the Pope when I said that.
The same thing happened with FNMA and FHLMC, but there was nobody there to resist.
By the way, I was sh!tcanned by politicians for explaining the facts of life.
Horray for you. The same thing happened to me once on the county level for the same reason.
Best career move in my life.
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.