Topic: Federal National Mortgage Association
The White House proposes to 'wind down' mortgage giants Fannie Mae and Freddie Mac. But they've been deeply entwined in the US mortgage market for decades. A look at how we got here.
A more realistic view is that a housing boom and bust happened to strike a fragile financial system whose fragility was worsened by ill-conceived government interventions.
The mortgage giants used everything from lobbying to charity to maintain their special status.
Federally linked entities like Fannie Mae now back 98 percent of home loans sold by banks.