Fannie’s And Freddie’s Fakeover – IBD – Investors.com

Posted on August 18, 2010

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You can’t talk about the housing crisis or reforms without talking about the affordable-housing goals HUD slapped on Fannie and Freddie. That is, unless you’re Tim Geithner.

The Treasury secretary hosted a summit Tuesday to discuss redesigning the mortgage-finance system — 75% of which is still controlled by Fannie and Freddie, which are still bleeding billions at taxpayer expense.

Geithner vowed to fundamentally “change” the failed government-sponsored mortgage giants. Yet, suspiciously, he didn’t offer how. Nor did he explain why they lowered their underwriting standards and collapsed under the weight of subprime loans and securities. So here’s a refresher:

via Fannie’s And Freddie’s Fakeover – IBD – Investors.com.

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