WASHINGTON — An investment firm is offering to buy from the government core businesses of mortgage giants Fannie Mae and Freddie Mac in a $52 billion deal.
Fairholme Capital Management of Miami made the proposal Wednesday to the Federal Housing Finance Agency, which oversees Fannie and Freddie. The government rescued the two companies in the financial crisis in September, 2008, with taxpayer aid totaling $187 billion.
Fannie and Freddie buy mortgages from lenders, package them as securities, guarantee them against default, and sell them to investors.
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