Again, not exactly. Freddie and Fannie did their part in causing the problem but they were not the only players at the table.
Just as they cannot be blamed entirely for the problem they cannot be held blameless either.
And again, it is also important to remember that while the GSE did buy some higher risk loans and also did buy some derivatives they began liquidating those holdings in 06, 07, and 08 and the loans they held were generally of higher underwriting standards than the true subprime loans being peddled by the independent mortgage companies.
Founded in New York four decades ago by Angelo R. Mozilo, a butcher’s son from the Bronx, and David Loeb, a founder of a mortgage banking firm in New York who died in 2003, Countrywide Financial Corporation became a $500 billion home loan machine with 62,000 employees, 900 offices and assets of $200 billion. As the mortgage market boomed beginning in 2000, no company pursued growth in home loans more aggressively than Countrywide.
Everyone jumped on the housing market bubble bandwagon!
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