Fannie Mae-No Politics (FNMA)

[TII]

I paraphrased it....his actual words, when asked about reducing GSE risk for the taxpayer were....

"We've tried out a number of risk sharing methods. We are concerned that the private sector, the capacity of the private sector, to take on this risk, particularly in an economic downturn and a distress situation would concern us greatly."

He then said....

"If the entire system were converted to the private sector you would have that risk of not having a backstop during a downturn and you'd have that risk of increased cost to borrowers, both of which would need to be evaluated by Congress as they evaluate how to move forward."