Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Can you provide a link to where F And F were required to buy insurance (not really insurance via SWAP) on the paper they created by packaging mortgages and selling the package via bonds to the public and others

It is the job - function of F and F to take mortgages - from many sources - combine - package and sell and to promise to make any buyer whole !! Best I understood - F and F did make those promises --- but the implicit stuff was TREASURY backing it up which was wrong and did not exist

It is all very new to me that F and F - packaged and sold but did not take the risk

If that was true and everything was insured via CDO or CDS or counter hedging or insurance or? then F and F 1) could not make a dime and 2) would NEVER have been put in conservatorship as their BONDS had no risk

?????