If you read what I wrote, I don't blame FNMA and Freddie exclusively for the crash, I blame Congress and the Clinton Admin for knocking loose the first rocks that started the avalanche. One thing to keep in mind: lenders and banks were selling their loans in record numbers to Fannie and Freddie after the reduction in underwriting regulations. So if you cannot sell a questionable loan, will you write that loan and keep it in house? Some did stay in house but the vast majority were sold to FNMA.


Absolutely, banks, mortgage brokers, politicians, realtors, and yes, even appraisers did their part to contribute to the mess. Guess what, I put a huge chunk of blame on CONSUMERS too.

It was my opinion a few years ago that we needed to get back to sound lending principles that we had gotten away from. (Dogfish knows way more about lending money than I can ever hope to) Too many borrowers had no skin in the game, ie, way too much real estate purchased with 0 money down and sellers paying all closing costs.