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Home » Store » News » MBS Guarantee Business Sank the GSEs as Fannie And Freddie Steered Into High-Risk Loan Business

MBS Guarantee Business Sank the GSEs as Fannie And Freddie Steered Into High-Risk Loan Business

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The business of providing guarantees for mortgage-backed securities – the major reason Fannie Mae and Freddie Mac are on federal life support today – was also the biggest factor in the collapse of the government-sponsored enterprises, according to a new government report. At the end of 2007, Fannie and Freddie had...
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