From Fannie Mae:
“Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America’s secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.“
And from Bloomberg:
“The bailout of Fannie Mae (FNM) and Freddie Mac (FRD), already the largest on record, could reach $1 trillion. Fannie and Freddie, 80 percent-owned by taxpayers, hold or guarantee 53 percent of the nation’s $10.7 trillion in residential mortgages. Their federal regulator is having them delist their shares, which have been trading for about $1 each, from U.S. stock exchanges. As of Mar. 31, borrowers were late on $338.4 billion worth of loans, up from $206.1 billion a year earlier. The companies have drawn $145 billion from an unlimited government line of credit.”
Fannie Mae says their job is to help those who house America. Pardon me. Who else is helping them in this mythological secondary mortgage market?