Fannie Mae and Freddie Mac played a significant role in the crisis: while not initially bundling subprime mortgages into their own securities, they were a non-trivial portion of demand for subprime mortgage-backed securities (estimates in the hundreds of billions) to satisfy HUD's affordable housing requirements imposed starting in 1992, thereby indirectly supporting the subprime market.
causalpending
Speaker
Russ RobertsEvidence Quote
“although they were not bundling subprime mortgages at least initially into their own securities they at the beginning of the explosion of subprime were a non-trivial portion of the demand for those securities we're using those to satisfy their affordable housing requirements that HUD imposed on them starting in 1992”
Created: 6/15/2026, 9:20:12 AM
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