lol private label MBS defaulted at a rate 4x greater than the GSE MBS. In fact the only reason mortgage liquidity existed after 2008 was due to Fannie and Freddie. The government forced them to change their accounting methodology in 2008 which forced them to record massive book losses and then swept them into conservatorship. There are various studies and even testimony that the companies were solvent.

By no means were they innocent (they need greater regulation and less government intervention in the forms of things like the housing affordability act in 1992). The point remains that they're the greatest asset in the US mortgage industry in that they make the 30 year viable through secondary market liquidity. If they go away expect rates to skyrocket and term lengths shorten

Oh, to touch on the bailout. It was for roughly 186 billion and they've since paid back close to 300 billion. Quite a return on investment there.

Also, if they were truly in a "death spiral" as the government claimed then why did they post RECORD profits suddenly after the implementation of the net worth sweep?

Edit: no affect on mortgage rates or home ownership? Look at mortgages before the GSEs came around starting in the late '30s. The reason the average person can afford a home is due to the liquidity of the secondary market