Fannie Mae-No Politics (FNMA)

[obiterdictum]

There is no support provided that consensually supports this statement: "...in 2008, 74% of the subprime mortgages outstanding in the U.S. financial system were on the books of government agencies, particularly Fannie and Freddie."

In particular, what percentage of subprime mortgages did Fannie and Freddie hold and or securitize in 2008 that defaulted vs. FHA, VA, HUD and the CRA? That percentage is certainly not anywhere near 74% for outstanding subprime loans for Fannie and Freddie and even less so for defaulted loans.

See the Financial Crisis Inquiry Commission Report to gain a substantiated view: http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf

Wallison presented the only dissenting view in that report that condemned Fannie and Freddie as the cause of the financial crisis. This view was based almost entirely on Edward Pinto's AEI work and not his own. The other dissenting view did not find Fannie and Freddie as the cause of the crisis. Instead, they said:

Fannie Mae and Freddie Mac did not by themselves cause the crisis, but they contributed significantly in a number of ways.