Exccuuuuuze me, but I THINK something is a little wrong historically here with this article.
“The government created Freddie Mac in 1970, joining it with Fannie Mae, in an effort to make mortgages more affordable. Their troubles began in the 1990s as both took on risky loans and more debt at the urging of the Clinton and Bush administrations, which sought to increase home ownership.”\\
I’m just an old guy with a really bad memory. But I THINK Fanny and Freddie were created in THE FREAKIN 1930’S BY FDR. I read their home pages, and that’s what they say.
If I’m wrong, please someone correct me. Flame me all you want, but I do think those ‘quazi governmental’ entities waaay predate the ‘70s!!
So much bulls**t, so little time to correct.
Hoping that some other Freeper who is sane and sober can check this out.
The original Federal National Mortgage Association (Fannie Mae) was created in 1938 under FDR and split in 1968 into the Government National Mortgage Association (Ginnie Mae), which is a U.S. government agency, and the current public-private GSE.
As for the Federal Home Loan Mortgage Corporation (Freddie Mac), it was chartered in 1970 under an Act of Congress.
Fannie and Freddie came out of the Community Reinvestment Act, in the Carter Administration. I was doing mortgages for a Federal S&L, and all of our paperwork was changed in 1977 to reflect the Federal agencies. In order to sell the mortgages on the Secondary market, they had to be Fannie/Freddie certified, and on F/F paperwork.