Mortgage agencies: Accidental heroes

Mortgage agencies

The US mortgage agencies, Fannie Mae and Freddie Mac, have been a popular target for the press in recent years. Ever since the financial restatement scandals hit the government-sponsored enterprises (GSEs) in 2004, commentators have been waiting to pounce on any sign of trouble at the agencies. For these detractors, the subprime crisis bedevilling the US mortgage markets came as manna from heaven, with a raft of articles pointing to the problems in store for Fannie and Freddie.

On the surface

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