Fannie Mae-No Politics (FNMA)

[Unhombrealado]

I believe explicit means that the government guarantees the MBS's through a contract with FnF, for which the govt will charge FnF a fee. So they will stop the NWS, but will still take some of the profits via an 'insurance fee' so to speak. Considering an implicit guarantee has been in place for ages, the charge should not be onerous--just remember the govt has tasted the pie, and wants to keep some piece of it.