Originally Posted by englade321
Seeing as that statement was made on the cusp of events that led up to the subprime mortgage fiasco I would tend to call it more prescient than weird
You may want to educate yourself about GSEs before you embarrass yourself further with more comments like this one.
From Forbes, detailing the effects of the early-90s mandate that Fannie and Freddie take active roles in facilitating "affordable housing":
"From 1995 until 2004, subprime loans by the traditional subprime lenders like Countrywide averaged slightly more than 5% of all mortgages, far too few to account for the growth in either homeownership or the housing bubble. CRA loans, totaling 3% of originations, were also too few. Where, then, did all the low-quality loans come from?
From 1994 to 2003, Fannie and Freddie’s purchases of mortgages, as a percentage of all mortgage originations, increased from 37% to an all-time high of 57%, effectively cornering the conventional conforming market. With leverage ratios that averaged 75-to-1, and funds raised with implicit government backing, the GSEs were pouring money into the housing market. This in itself would have driven the housing bubble.
But it also appears that, perhaps as early as 1993, Fannie Mae began to offer easy financing terms and lowered its loan standards in order to meet congressionally mandated affordable housing goals and fulfill the company’s trillion-dollar commitment. For example, in each of the years 2000 and 2001, the first years for which data are available, 18% of Fannie’s originations – totaling $157 billion – were loans with FICO scores of less than 660 (the federal regulators’ cut-off point for defining subprime loans)."