U.S. Housing Goals: Because Your Mortgage Matters... Sometimes
Newsweek highlights new housing goals for Fannie Mae and Freddie Mac. Ostensibly, these targets aim to increase access to affordable housing, especially for underserved communities. What they don't explicitly mention is the convenient amnesia regarding the 2008 financial crisis, where these very entities (Fannie and Freddie) were instrumental in a subprime mortgage bubble that devastated millions
of American homeowners, disproportionately affecting minority communities. Their 'mission' to promote affordable housing often paved the way for exploitative lending practices, leading to massive government bailouts totaling over $187 billion in taxpayer money. One might wonder at the timing of these new goals. Are they genuine attempts at rectifying past wrongs, or simply a fresh coat of paint on
a system engineered to prioritize profit over actual affordability? The same politicians who laud these 'new' goals often vote against robust housing protections or increased social spending, preferring to funnel funds into other industries. It's a tale as old as time: announce 'goals' that sound good, then allow the same mechanisms that failed before to continue operating, just with slightly
adjusted targets.