Fannie Mae-No Politics (FNMA)

[Unhombrealado]

The reason the GSE's make their money is in great part because the MBS' they sell are backed by the govt, thus making them attractive to investors. It's hard to model a FnF type of business without the govt guarantee. I'm OK with FnF paying a fee for insurance just like FDIC insurance works. Keep the business, recognize that some of the risk lies in the govt, pay a SMALL fee for it.

My concern is that legislators may allege that they GSE's were going to go bankrupt and so this fee would not be small, even though documents show otherwise, public perception is still that FnF were bad, and most politicians flow with public perception. We shall see.