Is Freddie Mac a Private Venture?

We taxpayers have owned Freddie Mac since 2008. One of Freddie's roles is to make home loans more accessible. Now that mortgage interest rates are quite low, one would think that Freddie's job would be easier and homeowners would have some relief. That is not exactly the case. Many of its homeowners are stuck with their high interest rates. This is the case because Freddie has become an organization willing to take excessive risks with our money.

Freddie's portfolio is huge. They divided it up into two parts - safe and risky. The safe part, where the return is low, was sold by Freddie to investors seeking safety primarily. They kept the risky, high interest-paying loans so that their return would not be as low as the loans they sold off. For Freddie to achieve its goals with these loans, it has to ensure that the mortgagees cannot get out of their high interest loans. This policy is not something that Freddie had been following for a long time; it started in 2010.

So, rather than helping homeowners, Freddie is doing whatever it can to keep them in shackles. Is it possible that greed is behind these efforts? The big guys at Freddie make big bucks. The fellow in charge of the investment portfolio - a government employee - made $2,500,000 in 2010 and probably more last year. 

Update: Naked Capitalism thinks the deal is not as bad as this.  It's just a typical deal for financial companies.