Freddie Mac and Fannie Mae, officially known as the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae), are two government-sponsored enterprises (GSEs) in the United States. They play a pivotal role in the country’s housing finance system, particularly in providing liquidity and stability to the mortgage market. In this comprehensive exploration, we will delve into the origins, functions, and the reasons behind the financial difficulties that led to their failure and subsequent government intervention. Part 1: Origins and Functions of Freddie Mac and Fannie Mae 1. Origins of Fannie Mae and Freddie Mac…