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Fannie Mae and Freddie Mac: A Critical Examination
This chapter examines the roles of Fannie Mae and Freddie Mac in the mortgage market following the 2008 financial crisis. It discusses the implications of their current conservatorship and the debate surrounding a potential return to the private sector, emphasizing the need for explicit government guarantees. The chapter also highlights the risks of changing the system and the importance of maintaining stability for homeownership and financial markets.