Fannie Mae-No Politics (FNMA)

[955]

Subprime loans were given to borrowers with poor or limited credit records or high debt burdens. Alt-A loans were made to borrowers who wanted atypical terms such as proof-of-income waivers, without sufficient compensating attributes. About 35 percent of subprime loans in non-agency mortgage securities are at least 60 days late, while 15 percent of Alt-A loans are, according to a Sept. 9 report by FTN Financial Capital Markets.

These loans were given by the banks who later dumped them on F&F. Affordable Housing Goal legislation mandated in excess of 50% of all loans made had to be these crap loans to folks incapable of repayment in a high unemployment job market. Banks happily complied with the legislation knowing they could dump all of it on the GSE's. Banks in coordination with Gov used this and fraudulent accounting and death spiral narrative to bring down the GSE's and place them in an eternal fake 'conservatorship'.