Fannie Mae-No Politics (FNMA)

[FreeFNMA]

going Loooong on FNMA just sucks. What he is saying with "their successors" is not that the govt is going to wind down FNMA and sponsor 2 diff companies to securitize mortgages. He is saying they are going to stop the govt from backing any company and open up the market for other companies to do what FNMA does. This will mean any company FNMA or others (successors) in that field will be on their own come time to cover their losses. they will either liquidate assets or go BK.

FNMA market share will always be there for mid size banks to sell mortgages to because no matter what the FDIC 90% liquidity will always be there. There is really nothing keeping WF and BofA from doing what FNMA does besides the risk because they have done it before and honestly it isnt that complicated.

having said that if they do release from any govt sponsorship we could see rates go up