Industry NewsMortgage

Future of Fannie, Freddie in question

Roadmap to Recovery: Raging debate over GSEs' role in meltdown
Published on Dec 10, 2008

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by CareyBot

It's a debate that could rage for years: were Fannie Mae and Freddie Mac catalysts for the housing meltdown and financial crisis, or victims of a boom-bust cycle they couldn't have foreseen?

The prevailing views on the topic could help decide whether Fannie and Freddie -- placed into government conservatorship in September -- will be rehabilitated or allowed to go the way of the dinosaur.

Republican presidential candidate Sen. John McCain is among those who see Fannie and Freddie as catalysts -- "the match that started this forest fire."