Fannie Mae (FNMA)

[Robert from yahoo bd]

Is the Director of the FHFA and their over 1,172 Employees, pulling in an average $178,000/year in Salary, unaware of this? "...in May of 2021 FHFA itself released a report titled Performance of Fannie Mae’s and Freddie Mac’s Credit Risk Transfer that not only agreed with my observations and conclusions but also offered data in support of them. The report first gave the economics of the companies’ CRT programs to date: “As of February 2021, the Enterprises had paid approximately $15.0 billion in interest and premiums to CRT investors and counterparties and the Enterprises had received approximately $0.05 billion via investor write-downs and counterparty reimbursements.” (That’s $1 of benefits for every $300 in premiums.) But it was the simulations of future CRT performance done by FHFA—using the residential mortgage model of a consulting firm, Milliman—that were the real eye-openers. FHFA ran both a “Baseline” and a “2007 Replay” scenario. In the Baseline scenario, Fannie and Freddie’s lifetime CRT costs were $33.60 billion and their “ultimate benefits” were $1.06 billion ($1 of benefits for every $32 in premiums), while in the 2007 Replay the lifetime CRT costs were $30.72 billion and the ultimate benefits were $10.10 billion ($1 in benefits for every $3 in premiums)."