6Mortgage giants headed for crisis

 

This is a thehill.com article.

 

Housing industry experts are sounding the alarm over the increasingly dire financial situation of the federal mortgage giants Fannie Mae and Freddie Mac.

The government-controlled enterprises are hurtling toward a severe capital crunch that will leave no buffer for absorbing future losses, experts say, potentially putting taxpayers on the hook for another bailout.

But nearly eight years after the Federal Housing Finance Agency (FHFA) took control of Fannie and Freddie, Congress has yet to pass a plan that would wind them down, reduce the government’s mortgage footprint and create a new housing finance framework.

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