Part of the issue is due to the nature of many loans that have been put out there- namely, those that were granted people who couldn't live up the requirements once ARMs and so on reset.
When Countrywide nearly went under with the sub-prime crisis, we were in a bind to start providing liquidity to a market that was freezing up faster than we could melt it.
Thing is, Fannie/Freddie don't regulate anybody. Their mission is to provide liquidity to the market (which in turn makes things cheaper). This crisis isn't really their *fault* (that would fall to the lenders who prompted the loans that eventually went to foreclosure because of their lax credit requirements), but unfortunately, it's essentially their job to remedy it. There was just too much going on for them to handle, necessitating the prop up.
no subject
When Countrywide nearly went under with the sub-prime crisis, we were in a bind to start providing liquidity to a market that was freezing up faster than we could melt it.
Thing is, Fannie/Freddie don't regulate anybody. Their mission is to provide liquidity to the market (which in turn makes things cheaper). This crisis isn't really their *fault* (that would fall to the lenders who prompted the loans that eventually went to foreclosure because of their lax credit requirements), but unfortunately, it's essentially their job to remedy it. There was just too much going on for them to handle, necessitating the prop up.