By 2003, Fannie Mae and Freddie Mac will have assumed the risk of almost half of all residential mortgages in the United States, says a report published by the American Enterprise Institute for Public Policy Research (AEI), putting the burden on taxpayers and creating a contradiction to their Congressionally chartered mission.

Furthermore, the study reported that if mortgage-backed securities guarantees are included in the figures, the number jumps to 91% of all conforming and conventional markets, creating a virtual nationalization of the mortgage market.

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