Fannie Mae (FNMA)

[Donotunderstand]

Privately insure collateralized assets (not the mortgages

Here are you talking about the F and F portfolios which were very heavy on TBTF bank PLMBS paper?

As I understand it this pile of money invested in mortgage related investments is being allowed to shrink and I am not sure if F and F would build it back up

With their capital levels so low - I did not think F and F still owned a ton of this paper?