It Took More Than Fannie and Freddie to Set Off the Housing Crash – The Wall Street Journal

December 19, 2021 by No Comments

Dec. 6, 2021 12:10 pm ET

In “The Housing Gang Is Getting Back Together for Another Bust” (op-ed, Nov. 26), Peter Wallison uses Fannie Mae and Freddie Mac’s recent loan-limit increases to repeat his assertion that Fannie and Freddie “brought down the U.S. housing market,” were “the true cause of the 2008 financial crisis” and will do it again. As a mortgage-insurance executive, I observed other key players driving the market to its unprecedented collapse.

Mr. Wallison errs in assigning Fannie and Freddie the sole blame for this disaster—though they were highly culpable. Their senior executives chased huge stock-price-driven bonuses, while abandoning their statutory obligation to sustain mortgage-loan-quality standards.

Source: https://www.wsj.com/articles/fannie-mae-freddie-mac-housing-crash-mbs-subprime-credit-rating-11638577250

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