Fannie Mae-No Politics (FNMA)

[obiterdictum]

In this case, Freddie Mac wants and pushes for a unified TBA contract so they do not have to compete with Fannie Mae against whom they are now losing market share because of greater liquidty. So, FMCC shareholders would like to see this happen and FNMA shareholders would not. MBS purchasers do not want to see a unified contract because Freddie is cheaper as it is now and will lessen competition between the two and that will alter the GSEs effort to keep performance of the MBS high. The US Treasury would like to see it because it means easier control over the GSEs, the TBA market, interest rates and housing finance.

For more details see: http://www.mbaa.org/files/Advocacy/2013SingleSecurityConcept-Transition1.pdf