Once a mortgage loan has been made, Uncle Sam doesn't stand idly by, but rushes in to take the credit risk. Fannie Mae and Freddie Mac, which are now in government conservatorship because of their reckless behavior in the lead-up to the crisis, have come to dominate the mortgage market. Along with the Federal Housing Administration, they insure or guarantee nine out of ten mortgages. Knowing that the government stands ready to back mortgages makes private lenders a lot less careful about the types of loans they make and purchasers of mortgage-backed securities a lot less discerning about the types of mortgages that back their securities. The problem is exacerbated by the fact that the government never charges enough for the risk it takes in providing these guarantees. Some of the plans for reforming housing finance would get rid of Fannie Mae and Freddie Mac and put private capital on the hook for the first losses, but the government would still be there to absorb the remaining losses.