As Fannie Mae and Freddie Mac go, so goes the U.S. apartment market. Together the two government-sponsored enterprises (GSEs) now provide 80% to 90% of the mortgages financing apartment sales.
The problem is that they are losing money — taxpayer dollars to be exact — hand over fist thanks to their portfolios of defaulting single-family housing loans. By the end of 2009, the U.S. government had already pumped more than $125 billion into the two entities to keep them solvent.
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