Source: The Hill
by Alex J Pollock
“Fannie Mae and Freddie Mac are the dominant companies in U.S. housing finance, which is the biggest credit market after government debt. They are huge, with combined assets totaling $7.8 trillion. Fannie and Freddie used to be government-sponsored enterprises. This privileged status led both of them to great financial success, combined with formidable political clout. Fannie, in particular, was a notable Washington bully. But having taken on excessive credit risk in the great housing bubble, they both failed in 2008, were put into and remain in government conservatorship, meaning total government control, and were bailed out by $190 billion in stock purchases by the U.S. Treasury, which means the government became and remains their dominant equity investor. So, Fannie and Freddie are no longer government-sponsored enterprises and have not been since 2008. Now, they are instead government-owned and government-controlled entities. ” (06/25/25)
https://thehill.com/opinion/finance/5366427-fannie-freddie-guarantee-government-control/