Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

No, building credit loss reserves is a good idea for what Fannie Mae and Freddie Mac are, INSURANCE COMPANIES!

What happens when we have the next inevitable downturn in the US Housing Market? First, credit loss reserves are dipped into, then the capital build up of the $90B in retained earnings.

Notice that on page 125 of the 10K, the balance of credit loss reserves has almost DOUBLED from 12/31/21 to 12/31/21, that's a good thing, especially since Doug Duncan Fannie Mae Chief Economist says US home prices are anticipated to drop 4%-5% this year.