Fannie & Freddy were given a blank check by the US Treasury at the end of the financial crisis. As reported here, they are using that money to buy mortgages from Wall Street. These are bad loans sheets, probably at inflated prices. This is what “Tarp” was supposed to do, but now it is out of the public eye. The taxpayers are funding this program , out of the public eye.
Meanwhile, Treasury is set to announce a plan to deal with Fannie & Freddie, possibly reducing their role in the housing finance system. The purpose of these organizations was to make money available for homeowners, not holding loans for their own account; but that’s what made money for the management. Now that the government owns them, they are money launderers. Their current role is very cozy for Treasury.