Of course Fannie and Freddie can’t prop up housing. The FHA modernizations and increased loan limits for Fannie and Freddie were meant to “steer SENTIMENT” in the market. It was meant to
a)get buyers off the fence and
b)lenders to start originating loans again
c)cause financial stocks to rally back
So the only thing that happened was “c” and even then it was feeble.
Remember in the 80’s when HUD had those huge lists of homes on auction? Well, those lists will be back – unless they pass tax reform first.
