Fannie Mae and Freddie Mac are GOVERNMENT ENTERPRISES!
Want to know why they were created?
“Fannie Mae was created in 1938 as part of Franklin Delano Roosevelt’s New Deal. The collapse of the national housing market in the wake of the Great Depression discouraged private lenders from investing in home loans. Fannie Mae was established in order to provide local banks with federal money to finance home mortgages in an attempt to raise levels of home ownership and the availability of affordable housing. ”
Of course, than government added the Housing and Urban Development group to help the underprivileged.
And then the Community Reinvestment Act to do the exact same thing.
All these programs were aimed at getting people in to houses. The risks of housing people who could not afford them simply increased more and more.
If government had not become involved at all, there would not be problem to begin with!