BUSINESS

Mortgage Market: U.S. Government Still Propping Up Real Estate: Newsweek

11/24/2009 05:12 am ET | Updated May 25, 2011

While the government has pacified the commercial finance, savings, and plain-vanilla banking sectors, it's sending reinforcements into the vast, restive region where the trouble began: housing.

After Lehman, the Fed plunged directly into home lending. It pledged to purchase huge quantities of mortgage-backed securities and bonds issued by Fannie Mae and Freddie Mac, the failed mortgage giants.

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