Fannie Mae-No Politics (FNMA)

[jeddiemack]

Everybody... with any experience in banking, accounting, finance, or the like... took Fannie and Freddie as nearly = to government paper.

As "rock solid".

In the 1980's I audited S&L's Banks, Thrifts, Pension Plans and a other financial institutions and later worked in Finance and can state without a doubt and 101% clarity and certainty that at no time were investments in MBS's or collateralization / security for as an example Over Night Repo's from either a market risk, credit risk, or such (except interest rate) were they ever questioned.

More simply the "

So, Fannie Mae did not emerge as we know it until 1968. The only federal charter that exists for Fannie Mae is the amended one previously posted. Previously, the government guarantees were from the FHA and VA mortgages that Fannie Mae purchased. But that ended in 1968, when Fannie Mae was federally chartered and transformed into a publicly traded, shareholder owned corporation with no government guarantee. "


from your writing however much true was NEVER in practice the reality.

The implicit federal guarantee was taken as solid and part of the cost of the system... ie. you put up with their games, political and such for their implicit role.


Essentially, the consideration paid the government for their guarantee was it the government being allowed to meddle in their affairs. Which as it turned out the government then set aside by taking the warrants and charging usury rates on lent money.