Fannie Mae-No Politics (FNMA)

[Rodney5]

Barron, It can be argued that Fannie Mae and Freddie Mac were taken over (Nationalized) to help the Treasury Dept. with the Federal Reserve prop up the housing market. And both companies were adequately capitalized when taken over and placed in conservatorship and did not need a so called bailout.

Evidence

The Toxic Waste seems to have been funneled through Fannie to the Fed.

Quote: "It's a big event that the Federal Reserve is offering to buy up nearly 10% of the agency mortgage market," said Art Frank, a mortgage strategist with Deutsche Bank Tuesday morning, the Federal Reserve announced that it would buy up to $500 billion of mortgage bonds guaranteed by Fannie, Freddie and Ginnie Mae, providing the ultimate support to prop up the $4.8 trillion market of these securities. The central bank also will buy $100 billion of the mortgage finance companies' debt securities, including that of the Federal Home Loan Bank, through reverse auctions starting next week. So far, other initiatives to prop up the market including a plan to have both the government-sponsored enterprises buy nearly $200 billion of these bonds and the U.S. Treasury's unlimited purchase of these bonds have done little to stop the weakening of risk premiums on mortgage bonds. As a result, mortgage rates have remained at elevated levels with little relief to consumers." End of Quote

Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33791597

From Board of Governors of the Federal Reserve System
95th Annual Report 2008

Quote: "In secondary mortgage markets, securitization of mortgages by Fannie Mae and Freddie Mac has fallen in recent months, and gross issuance of GSE-backed MBS has lately just out paced maturing issues so that levels outstanding have only inched up since the summer." End of Quote

Quote: "since the November 25 announcement of the Federal Reserve’s program to purchase MBS issued by the housing GSEs and Ginnie Mae, and they currently stand at 5 percent." End of Quote page 19

Link: https://www.federalreserve.gov/boarddocs/rptcongress/annual08/pdf/AR08.pdf