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Business news without the bullshit

Hijacking Fannie and Freddie

The fox (HUD) in charge of the chicken coop

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Predictable disaster in the mortgage market

In the early 1990s, only 1 out of 200 real estate loans had a down payment of 3% or less and Fannie and Freddie bought none of them.

By 2003, 1 out of 7 were financed with 3% or less and in 2007, it was a mind-bending 1 in 2.5 - and Fannie and Freddie enabled this madness by financing them.

You didn't need to be a fortune teller to predict the residential real estate market was doomed with this kind of insane financing.

Unfortunately for the people who bought mortgage backed securities, no one told them or the changing standards and they were too busy to notice.