This is because the politicians who designed and created the GSE's many decades ago were far smarter crowd than what we've had in 20 or 30 years. They designed the GSE's to function a certain way, which is far from what they do now. The politicians of the past 30-40 years have all played a hand in making the GSE's a pariah to both sides of government and are now we are used as a tug of war in each new admins housing policy.
If they had been left alone, without administrations meddling and faulty social engineering tactics, they would be functioning as they should. Now, it looks like every 4 years a president will fire, appoint new fhfa, reset cap rules for GSE's, blow a lot of hot air and do nothing much else.
The mortgage companies and banks will figure it out slowly, that they can't have their cake and eat it too. Then, when their businesses start to suffer due to the cycle of every 4 years creating more uncertainty, then they will wake up and see government is not the answer and maybe quit worrying about petty things.
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