We do not have a crisis at Freddie Mac, and particularly Fannie Mae, under the outstanding leadership of Frank Raines.

The quote “We do not have a crisis at Freddie Mac, and particularly Fannie Mae, under the outstanding leadership of Frank Raines.” by Maxine Waters reflects a political defense of the government-sponsored enterprises Fannie Mae and Freddie Mac prior to the 2008 financial crisis. At the time, Waters, a U.S. Congresswoman, expressed confidence in these institutions and in the leadership of Frank Raines, who served as CEO of Fannie Mae. Her statement suggests that she believed the organizations were stable and being managed effectively, despite growing warnings about risks in the housing market.

By highlighting “outstanding leadership,” Waters underscored her trust in Raines and the executive management of Fannie Mae, which played a central role in expanding homeownership opportunities. The institutions were seen as pillars of the U.S. housing finance system, and many policymakers resisted claims that they posed systemic risks. Her words illustrate the broader political and public perception at the time that these entities were too solid to fail.

The irony of the quote lies in its historical context. Within just a few years, both Fannie Mae and Freddie Mac faced collapse during the housing market crash, requiring massive government bailouts. In hindsight, Waters’s statement has been cited as an example of how political leaders underestimated or dismissed the vulnerabilities in the mortgage lending system, especially regarding subprime loans and risky financial practices.

The origin of this quote can be traced to Waters’s remarks in the early 2000s, when Congress was holding hearings on the regulation and oversight of housing finance. Her defense of Fannie Mae and Freddie Mac reflected a desire to protect institutions that expanded access to housing, but it also revealed how political support sometimes overlooked the structural weaknesses that later contributed to the financial crisis.