Fannie Mae-No Politics (FNMA)

[YanksGhost]

Correct. This prevented UST being forced to shift 100% of the GSE's $3+ trillion in outstanding MBS onto its books. Only affected were the MBS bonds Treasury chose to buy, and MAYBE a contingent liability for a guarantee on any MBS on which FnF might default in the future. This was to avoid the debt ceiling conflict that led to Fannie Mae being privatized in the first place.

UST has never defined what its response would have been in case of any default (which thankfully never occurred), but GOV has clearly stated that there is NO GUARANTEE under conservatorship and I believe that is stated in every bond offer circular issued during conservatorship.