Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

but again - such larger portfolio does introduce the risk that F and F will funk up and blow through capital if the portfolio - in search of maximum income or growth - gets too risky-junky

Astute financial intermediaries match duration of assets with liabilities like Tim Howard and Tom Lawler did with Fannie Mae when they were building the Mortgage Portfolios in the 1980's and 1990's.

The nice thing about having the GSES buy in the Secondary Mortgage Market is when spreads are high (like now) they can come in and lower them and that should put downward pressure on Mortgage Rates for American Families.

The Federal Reserve may or may not be happy about that but the GSES were created to help low and moderate income Americans make the American Dream possible my friend.