Who ultimately holds the MTG Loans? Banks? NOPE--- YOU DO!!!!

Below is a snippet from a Banker and Tradesman article on 2/21/22 by Andrew Haigney 

YES YOU SHOULD BE SCARED- YOU OWN IT

On a macro level, we see the combination of higher interest rates and quantitative tightening weighing on real estate values and liquidity. It should be noted that the Federal Reserve currently owns about $2.6 trillion, or roughly 30 percent of all outstanding residential mortgages. Prior to the 2008 financial crisis, the Fed owned zero mortgages. The recent housing mania goes well beyond ultra-low interest rates. The market has been subsidized by the federal government and unwinding these subsidies could spell trouble for the housing market.

Is this a good thing or bad?

Can the FED allow prices to fall and end up holding worthless loans?  Last time it was the banks, and the Government propped them up.  What would happen this time?