A lot of dubious information in the WND article.
Fannie and Freddie continued to deal in conforming paper during the bubble even when making loans to subprime borrowers. Conforming paper had the lowest default rate, that’s the reason for requiring conforming standards.
The loans that created the bubble and ultimately blew it up were made by F&F’s private sector competitors. The vast majority of these lenders were not covered by the CRA, they weren’t deposit-takers, and they made these loans without any gov’t pressure at all. These were Alt-A loans, NINJA loans, Option ARMS, the exact opposite of conforming paper. None of this will be coming back.
On its face I don’t like the idea of 3% downs and lowering standards, but if F&F are dealing only in conforming paper this is not remotely what we saw in bubble.
Well then, nothing left to say except: Enjoy the crash after the new bubble pops.