6 Critical Insights into Fannie Mae and Freddie Mac's Impact on the Housing Crisis

4. The Federal Government's Response to the Crisis

The federal government responded to the unfolding crisis quickly and on a large scale. In September 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship, effectively taking over the GSEs to prevent their failure. This section examines how the government’s intervention stabilized Fannie and Freddie and what this meant for the broader housing market.