Finance
The Pandemic Makes Fannie and Freddie Even More Indispensable
Government control of the mortgage giants gave Congress an easy tool to provide economic relief to Americans quickly.
Mortgages are under strain.
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The pandemic has pulled Uncle Sam deeper into the housing market again. This time he may become too deeply embedded to ever leave.
With the economy shut down, unemployment soaring, and no clear end in sight, policymakers have been leaning on two mortgage companies the government took control of during the last housing crisis, Fannie Mae and Freddie Mac. The companies buy and guarantee home loans and then package them to be sold in the bond market. And now they’re at the heart of the government’s efforts to rescue homebuyers, mortgage lenders and servicers, and some landlords.