Freddie Mac is planning to offer stand-alone second mortgages, a move that has sparked controversy and mixed reviews. The initiative aims to enter the home equity market, traditionally dominated by private-label securities. Critics argue that this decision could put taxpayers at risk, as these second liens may not be sold at a profit. The White House, under President Joe Biden, is reportedly pushing for these notes to be integrated into government-sponsored enterprises (GSEs) due to their lack of profitability. The Federal Housing Finance Agency (FHFA) has remained silent on the issue, raising further concerns. Meredith Whitney has been a notable commentator on this topic.