FNMA posts 2 consecutive monthly volume declines. FMCC, winning!
Annualized month-on-month growth in November and December:
Fannie Mae: -0.4% and almost flat.
Freddie Mac: +2.4% and +3.1%.
This slams all those in Wall Street promoting the idea of a combined FnF (Goldman Sachs, GS alumni Sandra Thompson with the FNMA HQ lease contract terminated this month, 5 years before the deadline "if it's significantly changed", the media published at the time it was signed, etc.)
It's been proven that there is a benefit from the competition between FnF.
This is because Fannie Mae found a new revenue stream with the extortion of money from Freddie Mac, under the guise of normal operations, with the commingled securities. A catastrophic-loss reinsurance that Freddie Mac is being forced to buy in order to sell its products, when there is no need. Latest: $105 billion, net, at 9.375 bps.
These "resecuritizations" unveiled by Freddie Mac in June 2022, are meant to bring in private capital in the Guaranty Mortgage Securitization business, helping them to sell their products (UMBSs) and compete with FnF on a level playing field.
It could be a Govt Catastrophic-Loss Reinsurance for the option 3 in the UST Privatized Housing Finance System revamp, chosen for the release from Conservatorship in 2011. Or private reinsurance for the options 1 and 2.
More ways to spin funds off to one company of the gang: now Fannie Mae. That's why the "deregulation segment in Fannie Mae", promoted by Goldman Sachs commented before, that secures good deals for them (sale of undervalued assets), and later this revenue stream makes up for the losses.
Other examples: CRTs, Bitcoin scam, IMF-Argentina spree,...
