Multi-National Corporations

[skyfall123]

So you see that the Gub-mint created the secondary mortgage market. They also set the underwriting standards for loans. So loan originators just have to make sure all the boxes are checked for Fannie and Freddie and they can originate a loan. They are then sold to Fannie or Freddie and enter the secondary market. Correct me if I am wrong on some of the details mortgage brokers, but that is how it works in a nutshell.

Your first paragraph taken from Wikipedia states about Fannie Mae [2] The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities.....then using your own words you now state that "the Gub -mint CREATED the secondary mortgage market.

The Financial Crisis Inquiry Commission reported in 2011 that Fannie & Freddie "contributed to the crisis, but were not a primary cause." GSE mortgage securities essentially maintained their value throughout the crisis and did not contribute to the significant financial firm losses that were central to the financial crisis. The GSEs participated in the expansion of subprime and other risky mortgages, but they followed rather than led Wall Street and other lenders into subprime lending.

View report here http://fcic-static.law.stanford.edu/cdn_...usions.pdf (Fannie Mae discussed specifically p.25,26,27,28)

Subprime mortgage crisis - Wikipedia, the free encyclopedia