Fannie and Freddie execs were warned

Top executives at Fannie Mae and Freddie Mac ignored warnings that they
were taking on too many risky loans, according to documents released yesterday by a House committee. E-mails and other internal documents show
that the companies’ former CEOs received recommendations to avoid risky
loans. Fannie and Freddie own or guarantee about half of the $11.5
trillion in home loan debt outstanding in the U.S. These loans have
traditionally been 30-year fixed rate mortgages with down payments of
at least 20 percent, but Fannie and Freddie lowered their standards in
recent years.