When the federal government took control of Fannie Mae and Freddie Mac, two teetering mortgage-finance agencies, in September 2008 it was meant to be temporary. Yet their surreal existence as shareholder-owned prisoners of the state looks likely to drag on for years. Nobody is happy with the status quo. The federal government routinely guarantees 85% or more of newly issued residential mortgages, primarily through Fannie, Freddie, and the Federal Housing Administration (fha). But withdrawing that support is impossible while the housing market is so fragile.
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