Freddie Mac-No Politics (FMCC)

[Robert from yahoo bd]

It is very possible once the bubble bursts Fannie and Freddie go into receivership

I don't see receivership as a likely scenario because of the 10 year under supply of home building that has resulted in a 3m to 5m deficit of needed housing, capital should rebuild substantially over the next 6 to 10 quarters, the gses have forced lender buybacks on many loans not meeting their strict underwriting criteria, credit enhanced mortgages should perform much better than during the gfc as MI companies are monitored more strictly, the average gfee is 49.6 bps and 80% to 90% of homeowners will continue paying to save their home, the stress test says it's not a problem, the gses book of business has an average ltv in the 50's, the average fico score is 740, do you want some more reasons?