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Re: Donotunderstand post# 777147

Friday, 12/08/2023 5:46:11 PM

Friday, December 08, 2023 5:46:11 PM

Post# of 796348
"We alone are responsible for making payments under our guaranty. The certificates and payments of principal and interest on the certificates are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any of its agencies or instrumentalities other than Fannie Mae."

https://capitalmarkets.fanniemae.com/mortgage-backed-securities/mbs-prospectuses

So, the federal government has the BEST of both worlds with Fannie Mae and Freddie Mac. Their $7.6 Trillion in MBS is NOT EXPLICITLY GUARANTEED BY THE FEDERAL GOVERNMENT, rather the Capital Markets understand that the US Government will almost certainly come in and rescue Fannie Mae and Freddie Mac, since they are the backbone of the US Secondary Mortgage Finance Market.

THEREFORE THERE IS AN IMPLICIT GUARANTEE NOT AN EXPLICIT FEDERAL GOVERNMENT GUARANTEE.

Do you still not understand, or is your gut reaction telling you not to trust me because I'm you know, from the other side of the aisle and you have always been told not to trust us. wink !

Why do you think Uncle Suggy wants so much Capital in a 1st Loss Position wink !