The Pandemic Makes Fannie and Freddie Even More Indispensable

Bloomberg, May 21, 2020–Joe Light, Prashant Gopal

With the economy shut down, unemployment soaring and no clear end in sight, policymakers have been leaning on two mortgage companies the government took control of during the last housing crisis, Fannie Mae and Freddie Mac. The companies buy and guarantee home loans and then package them to be sold in the bond market. And now they’re at the heart of the government’s efforts to rescue homebuyers, mortgage lenders and servicers, and some landlords.