annie Mae and Freddie Mac have been quietly redistributing risk and cash on a massive scale, finds Prof. Benjamin Keys March 17, 2015 Jake J. Smith When millions of homeowners defaulted on their mortgages in 2008, many pointed the finger at two less obvious culprits: Fannie Mae and Freddie Mac. The two mega mortgage buyers had been picking up risky loans and selling them with a guarantee of repayment. This amplified the housing crisis and forced the Federal government to bail them out at the taxpayers' expense. Ever since, there’s been a serious movement to dismantle Fannie and Freddie. But last week, Chicago Harris Prof. Benjamin Keys released a paper suggesting that Fannie and Freddie might be doing the economy a hidden favor by redistributing risk and cash—to the tune of $20 billion. Keys explains what’s going on, and what it means for American housing policy. To make sure you never miss a new episode of Radio Harris, subscribe on iTunesor Stitcher, or follow us on SoundCloud! Upcoming Events More events Data and Policy Summer Scholars Program (DPSS): Deep-Dive Conversation with Jose Macias and Alexandra Sobczynski Mon., May 06, 2024 | 7:30 PM International Policy Action Lab Mini Class with Austin Wright Tue., May 07, 2024 | 6:00 AM Driving Policy Innovation in the Social Sector in India: Lunch Conversation with Luis Miranda Tue., May 07, 2024 | 12:30 PM Harris School of Public Policy (The Keller Center), Room 2112 1307 E 60th St Chicago, IL 60637 United States