Fannie Mae-No Politics (FNMA)

[obiterdictum]

Do you wish one of the more accurate accounts of the housing crisis and the GSEs based on facts?

See:WALL STREET AND THE FINANCIAL CRISIS: Anatomy of a Financial Collapse
MAJORITY AND MINORITY STAFF REPORT
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
UNITED STATES SENATE
http://www.levin.senate.gov/imo/media/doc/supporting/2011/PSI_WallStreetCrisis_041311.pdf

The GSEs story begins on page 36 and runs through the report on 26 different pages.

Also for info about the report:
http://www.hsgac.senate.gov/subcommittees/investigations/media/senate-investigations-subcommittee-releases-levin-coburn-report-on-the-financial-crisis

Please note that the data is taken from Fannie and Freddie documents and is not hearsay and news report and opinion.

It is amazing that the Corker-Warner and Hensarling ignore this report as do the media and academics. One can suppose it does not fit their wrongheaded political, economic and ideological model of the world at large, so ignore it. it is a crying shame...

Fannie Mae was a player in the housing collapse, but a minor one compared to the political and legislative pushes for affordable housing, mortgage originators making and selling of poorly underwrit mortgages to the secondary market including the GSEs, credit rating agencies incorrectly rating MBSs, CDOs, ABSs and CDSs with high ratings, the lack of strict and efficient government regulation, the increasing interest rates, decreasing housing sales and value and the widespread delinquency and defaulting on mortgages by unqualified borrowers. The latter three factors stimulated the collapse and it all fell like dominoes in a line as the liquidity (cash) dried up from the cash flow sources: borrowers not able to make principal and interest payments to flow through to the investors who purchased various types of mortgage related securities in the secondary mortgage market.