Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

955, I read this paper yesterday (J. Gorsuch listed the paper in Footnote 6 of a Nondelegation opinion) and it gives a great analysis of the federal government agency structure and history, it's a good read over several hours.

Can the Administrative State be Tamed?
Christopher DeMuth
Journal of Legal Analysis, Volume 8, Issue 1, Spring 2016, Pages 121–190, https://doi.org/10.1093/jla/law003
Published: 29 February 2016

https://academic.oup.com/jla/article/8/1/121/1751551

"Another departure, also in financial regulation, was the combined actions of the Department of Housing and Urban Development, several bank regulatory agencies, and the government-sponsored corporations Fannie Mae and Freddie Mac that produced a vast expansion of “nonprime” mortgages to promote homeownership among persons of modest means and members of minority groups. 12 The regulators encouraged banks and other financial institutions to relax traditional mortgage underwriting standards (eliminating down-payment and income-documentation requirements and the like) and to extend these mortgages to borrowers in lower-income and minority communities. Fannie and Freddie subsidized the mortgages (through implicit federal guarantees on their own borrowing) by purchasing them in large numbers, packaging and marketing them as derivative securities (“mortgage-backed securities” or MBSs), and purchasing large quantities of MBSs created by private banks."