A Comment About

Bailing Out Fannie and Freddie

July 15, 2008 - 12:11 am - by Arnold Kling
Jarhead
2008-07-15 10:05:31

Dumb question.

Wouldn’t mortgage insurance be required on those low-down-payment loans the GSEs acquired? Shouldn’t the insurance companies be taking the hit?

Were they stupid enough to buy uninsured high-risk loans?