Fannie Mae and Freddie Mac experienced financial problems during the credit crisis because they:

Question

Quizplus · Accepted Answer

Fannie Mae and Freddie Mac invested heavily in subprime mortgages, which are loans given to borrowers who have a higher risk of defaulting on their payments. These subprime mortgages were packaged into mortgage-backed securities and sold to investors, which ultimately resulted in the financial problems experienced by both Fannie Mae and Freddie Mac during the credit crisis.

Fannie Mae and Freddie Mac Experienced Financial Problems During the Credit