See #85.
The banks transfer all of the risk to you and me when they sell the loan to FANNIE MAE. We are the ones who will pay if the FANNIE MAE pyramid ever collapses.
As for taxpayers backing these government sponsored enterprises I ran across the following recently in a column on the subject.
* United States Code
o TITLE 12 - BANKS AND BANKING
+ CHAPTER 46 - GOVERNMENT SPONSORED ENTERPRISES
U.S. Code as of: 01/06/03 Section 4503. Protection of taxpayers against liability
This chapter may not be construed as obligating the Federal Government, either directly or indirectly, to provide any funds to the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Federal Home Loan Banks, or to honor, reimburse, or otherwise guarantee any obligation or liability of the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Federal Home Loan Banks. This chapter may not be construed as implying that any such enterprise or Bank, or any obligations or securities of such an enterprise or Bank, are backed by the full faith and credit of the United States.
[End]
I believe Mr. Greenspan has tesified before Congress expressing worry about Fannie Mae, et al. should it be widely known that investors' money is NOT backed by the U.S.