The Real Deal Miami

Who’s to blame for mortgage meltdown?

October 17, 2008 11:45AM

Fannie Mae and Freddie Mac have been blamed for causing the
mortgage meltdown. The companies lost a combined $14 billion in the year ending
June 30, 2008 largely because they lowered credit standards and purchased or
guaranteed questionable home loans. Some mortgage industry consultants say the
worst-performing mortgages were originated by subprime lenders and packaged
into securities sold by Wall Street, not Fannie and Freddie.