Fannie Mae-No Politics (FNMA)

[JOoa0ky]

That NYT article was fabulous reporting albeit with 2-3 factual errors... but great background info nonetheless.

During early years of conservatorship period, the motive was to eliminate FnF so that the big banks can absorb their business.

However, since the Feds started jacking up the interest rates and the mortgage rate spreads started widening, the conservatorship is now negatively affecting the big banks business.

It has become more beneficial to release the GSE than to keep them in conservatorship. Forgot who said it but GSE release and resumption of buying MBS can drop the mortgage rates by about 1-1.25%.