After much hand-wringing when neither firm could produce understandable financial statements and the OFHEO threw up their hands before Congress claiming there was no way to effectively regulate the "Government Sponsored Entities", atThe funniest thing about the recent developments at Fannie Mae and Freddie Mac - where they were recently given the go-ahead to more loans, in larger amounts, with relaxed lending standards - is that this is where all the housing problems started back in 2003. When you're on the look out for a new home, you need cash. A lot of it. Most homes today have down payments that are more than what the buyer can afford right then and there. The solution for this? A mortgage.
