Fannie Mae-No Politics (FNMA)

[955]

Slippery, forked tongue manipulators of the FHFA at it again which has become more the norm these days in order to sucker in the unsuspecting investor. Translation required to grasp the true meaning:

The final rule further exposes the Enterprises to unmitigated risk by transferring high credit risk of mortgages for the irresponsible and unqualified to private investors, thereby destroying the markets of the GSE's. Socialized gains, privatized losses. This enhances risk to taxpayers by forcing the Enterprises to meet mandated quotas of access to mortgage credit for the irresponsible and unqualified. Taxpayers will be required to make up the losses resulting from this mass exit of investors in the GSE's.

"The final rule provides the Enterprises with the necessary incentives to transfer credit risk to private investors, which will help protect taxpayers from the risks posed by the Enterprises and will support the Enterprises as they strive to provide equitable and sustainable access to mortgage credit."