Let me first state I'm not a finance guy and just trying to get a better understanding of debt. All my life I've heard is that "the bank loans you money to buy your house" but that doesn't exactly seem to be the case. Every mortgage I've ever had or any more I know anyone else that has gets the initial mortgage from a bank but that mortgage is then sold to Fannie Mae/Freddie Mac.
But Freddie Mac is government sponsored (what does that even mean?) that buys mortgages and sells mortgage backed securities. It's market cap is only $450mil but holds $2Trillion in assets. Apparently the federal reserve buys these Mortgage backed securities to the tune of owning ~98% of residential morgates. Is the Fed introducing currency into the market through inflated values of housing?
In other words, my understanding is you go to buy a house and you need a mortgage. The debt flow goes Bank --> Freddie Mac --> Federal Reserve at the same time the federal reserve is printing record amounts of money. Is the housing market how they are distributing the printed money to the masses causing the record levels of inflations we're seeing?
There is only one Bank. The government has nothing to do with any of it. Putting the government in the way through a "conservatorship" of those private mortgage agencies only puts more burden on the public, like a refuge for bad debts that the Bank makes. It is still all ultimately controlled by MegaBank (there is only one Bank in the world, all banks, including the Fed are just different doors to the same bank).
I don't know what justification they used (in the details) for the Brrrr process, and it's a good question, but it doesn't really matter. There are multiple paths, but all roads lead to the BIS (the biggest door for Megabank).