The New York Times traces the lamentable tale of Fannie Mae and Freddie Mac’s descent into insolvency.
How’d it happen? Greed, of course. Greed for political goals, greed for self importance, and greed for results achieved without responsibility.
Everybody understood that we were now buying loans that we would have previously rejected, and that the models were telling us that we were charging way too little,â€ said a former senior Fannie executive. â€œBut our mandate was to stay relevant and to serve low-income borrowers. So thatâ€™s what we did.â€