The Real Deal Miami

Fannie and Freddie execs were warned

December 10, 2008 03:26PM

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.