More on the Freddie and Fannie Saga

With the White House primed to raise limits on what Fannie Mae and Freddie Mac can borrow from the Treasury Department and to empower the Treasury to buy stock in the companies, it looks as though the government will be more involved with these companies than ever before. Supposedly for-profit companies, these have both been quasi-governmental since they were formed.
Even though they have never been involved in the subprime mortgage market, and have only bought loans that met high standards...as Congress intended, they have still been caught in the tidal wave created by those defaults and a faltering economy. As the housing market has plunged, even their "no-risk" borrowers are defaulting.