Here is a quote from Roger Lowenstein, Cracked Foundation, N.Y. Times Magazine, April 25, 2010, p. 11:
“At present, 9 of every 10 new mortgages are sold to, or guaranteed by, arms of the U.S. Government, the majority of them to Fannie and Freddie. Which is to say, without Uncle Sam, it is not clear that the private market for housing would even exist.”
We recommend that you read this entire article. It’s short, so it won’t take much of your time.
For the entire article go to http://www.nytimes.com/2010/04/25/magazine/25fob-wwln-t.html?ref=magazine