Article: Privatize Fannie Mae and Freddie Mac: the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation make mortgage markets inefficient, choke off competition, and help only the affluent.

The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation make mortgage markets inefficient, choke off competition, and help only the affluent.

Freddie Mac (the Federal Home Loan Mortgage Corporation) and Fannie Mae (the Federal National Mortgage Association) are two of the largest financial institutions in the nation, with more than half a trillion dollars in assets between them. Yet, few people can explain exactly what function these two financial giants serve. Their names are recognizable from the glowing discussions of their profitability in the financial section of the newspaper. They may sound familiar because of the ...

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