Internal Freddie Mac documents show that senior executives at the company were warned years ago that they were offering mortgages that could pose dangers to the firm, hurt borrowers and generate more risky loans throughout the industry…. In a memo to former Freddie chief executive Richard F. Syron and other top executives, former Freddie chief enterprise risk officer David Andrukonis wrote that the company was buying mortgages that appear 'to target borrowers who would have trouble qualifying for a mortgage if their financial position were adequately disclosed.' (New York Times, Tuesday)

Smoking gun?

FEE Timely Classic
Subprime Monetary Policy by Gerald P. O'Driscoll Jr.