Replies to post #556645 on Fannie Mae-No Politics (FNMA)

[ReadyToRumble]

No. He was referring to giving the good parts of FnF to private investors. At least that's the part I was referencing in my previous comment.

[AuntyMamie]

Perhaps he was alluding to the credit transfers. FnF are forced to sell the most profitable risk tranches of good loans as a way of "offsetting" default risk. They are literally forced to give away OUR FUTURE PROFITS to banks.

The HUD-FHA plan will push the ENTIRE risk of subprime back to banks portfolio. And require them to keep significant "skin-in-the-game" (not just collect up-front fees) so there less incentive to game-the-system.

I like this plan.