Replies to post #372183 on Fannie Mae-No Politics (FNMA)

[chessmaster315]

This plaintiff obviously dropped his suit, probably because it was cost prohibitave to continue, and that suit may be redundandt with other pending suits. Its a non issue.

[Donotunderstand]

ARM's and hedging gains.

?
How does the rising interest rate on an ARM mortgage help Fannie which is insuring the payment of what is now rising interest along with principal ............... might it not be the opposite in terms of being the insurance company --- with rising payments making default more likely?

hedging gains

boy oh boy - as interest rates - Fannie hedging losses turn to profits and that is likely 1-2B more net net profit per quarter