Replies to post #15029 on Fannie Mae Preferred S (FNMAS)

[Donotunderstand]

rosen62

Aside from owning some old preferred and now speculating - I do believe a fixed FNMA along with more competition - along with a new model of government reinsurance is what is best all around

We will see

regarding reinsurance - I think the model is not first private for 5 or 10 percent then GOV for the rest..... that leaves lots of spaces for games and moral hazard

I think the model is private first for say 5% - then its 50-50 on anything more that is lost ............. that will keep the bundlers of MBS paper honest

And - given we have seen that a bundler (FNMA) can sue banks (originators) for bad mortgages or bad PLMBS where misrepresented that the courts add some teeth to more honesty going forward