Fannie Mae-No Politics (FNMA)

[real777mellon]

Ok let's just come out and say it. In June 2024 the new Freddie Mac buying the home equity loans aka the illiquid market also known as secondary mortgages is about to see a large Freddie Mac sized jump in liquidity to buy these off banks to get them giving them out again on the condition that Freddie Mac also bought the original mortgage loan. After that Freddie will securitize these "secondary mortgages" and sell them off to investors. What to make of that? 1. Fannie will follow but since the market is small and illquid to begin so Freddie being the smaller sister company makes sense. But when they begin next month with Freddie Mac (est date) Fannie will follow and there will be more revenue to both make faster MBS out of the first mortgages purchased off banks lenders and some non-bank lenders and then also on the secondary market with all of these securities making the re-capitalization goal achieved much sooner than originally thought because selling the securities of the second half bundled loans will reap more profits than expected with only using the first level origination of mortgages to buy - securitize - profit.. Just a thing to watch for.