I understand that they are both government sponsored companies and that they are publicly traded so I guess my question is why was the bulk of the housing market (during the housing bubble) seemingly balanced between only these two companies? How did the government allow TWO companies to have such power? Why did the fate of the entire market lie in their hands? Doesn't this go against regulations?
Read more: Are Freddie Mac and Fannie Mae the most influential mortgage loan companies?
