[quote=curiousmind][quote=SK in CV] The GSE’s didn’t loosen their standards and get into the subprime market until late in 2006 By that time, the crash had already begun.[/quote]
HAHA![/quote]
SK is right.
The GSEs were actually shrinking their portfolios because of the accounting issues earlier in the decade. It wasn’t until everyone (in the right places) knew that the housing/credit market was going to collapse that the GSEs were told to expand their portfolios, buy up riskier securities, and increase loan limits.
