People Loans
Did Freddie Mac and Fannie Mae play a part in people getting loans that should not have been made?
By underwriting the loans (or whatever they do), were they allowing these absurd loans to be made? Such as “no income no assets”, 125 % loans and loans to people with lousy credit? I heard on a radio show that Freddie and Fannie had a government mandate, that increased to back loans to get people out of public housing? I’m trying to figure out the validity of this.
They were basically insuring the loans, they did not issue the loan themselves. They made their decision based on the information provided by the brokers, and appraisal companies. So, not that much