Fannie Mae-No Politics (FNMA)

[Donotunderstand]

serious question

how does the high capital requirement hurt the ability to effectively price?

F and F basically have a duopoly and massive pricing power - I thought?

what is the alternative - PLMBS ?

If so - then the added risk to F and F will be low if they can not compete with self insured paper done by the TBTF banks

For paper done by smaller banks - I thought there really was no pricing competition (for banks and C/Us that do not want to give their business to their big brother competitors)

??