What does it mean for Finne Mae to "Back mortgages" and how did stuff like this cause 2008?

I don't really understand the whole mortgage backing/Freddie Mac/2008 financial crisis concept.  I recently read that Fannie Mae & Freddie Mac are backing mortgages of up to $1M.  What does this mean? I also have a vague understanding that Fannie & Freddie were key players in the 2008 recession.  Can someone explain?

 
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