An 11th-hour payroll tax cut extension signed into law last week would for the first time divert funds directly from Fannie Mae and Freddie Mac, the two mortgage-finance companies under US conservatorship, to pay for general government expenses. Using fees from Fannie Mae and Freddie Mac is setting a precedent that will keep the government in the mortgage business for the foreseeable future.
Here is an interesting stat I found: Fannie Mae, Freddie Mac and the FHA currently back more than 90% of loan originations, about double what they did during the subprime lending boom, according to Inside Mortgage Finance, a trade publication.