While we can all blame Fannie and Freddie for the housing collapse and its unprecedented cost to taxpayers, the real blame rests on the politicians who pushed the mantra that home ownership should be a “right” instead of a “privilege”. These same politicians pushed the leadership at Fannie and Freddie to underwrite risky borrowers which opened the floodgate for banks and wall street who made ridiculous loans to unqualified buyers. Now these same politicians want to shut down these very important institutions, as if to blame them for the entire debacle.
Owning a home is the American dream. My parents came to the US as immigrants and lived this dream. But they paid their bills, lived within their means and worked hard and didn’t blame others for their shortcomings. Perhaps politicians in Washington should do the same.
Article of Reference:
Obama to push for housing reform of mortgage giants