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All I can say is Thank God that Fannie Mae and Freddie Mac failed to meet their low income lending goals. Now you can call me a heartless bastard, but I really do not mind. Hear me out.

We have heard how evil lenders have been writing loans to families that could not pay it back and causing the housing crisis. But if you read the following you will see that Fannie and Freddie encouraged this behavior. Heck, by admitting they have failed to hit their quota are telling us that even they think the mandates that Congress gave them are nuts!

Both companies missed their 2008 goal to set aside 56 percent of their loan purchases and mortgage guarantees for low-and moderate-income borrowers, Federal Housing Finance Agency Director James Lockhart said today at a real estate industry event in Washington. He didn’t say what the new target would be.

“One of the ways Fannie and Freddie made their goals in previous years was to buy those subprime mortgages in private- label securities and that wasn’t a safe and sound practice,” Lockhart told the Asian Real Estate Association of America and National Association of Hispanic Real Estate Professionals.  via Bloomberg.com.

What really gets me is that Fannie and Freddie are saying they were buying up subprime loans to hit their quota of low income loans. Even if you have been hiding under a rock the past couple of years you know subprime loans have been a big cause of the foreclosure crisis.

Now we have the quasi national lenders who have to fulfill mandates from the federal government that they can not. These mandates they are just as dangerous as they were 5 years ago. So here is my question:

How can Congress and the Federal Government have not changed the mission of Fannie Mae and Freddie Mac to work in todays environment?

By insisting they 56 percent of loan purchases be made to low income borrowers in a housing decline you are essentially saying that you want to exasperate the present mess we are in now.

Who out there can truthfully say that the Federal Government did not play a large role in the housing crisis with a straight face?

Related posts:

1. How Will Fannie and Freddie Deal With The Second Mortgages?
2. Who Is Watching Fannie And Freddie? Answer Nobody Now. Internal Auditor Fired
3. Mortgage Bankers Association Propose Dismantling of Freddie, Fannie
4. Christmas Surprise – Fannie Mae and Freddie Mac Get Bailout
5. Congressman Calls For Abolishing Freddie Mac and Fannie Mae