Replies to post #42805 on Freddie Mac-No Politics (FMCC)

[3antar]

Quite from this article

Mr. Mnuchin invested in OneWest alongside John Paulson, a hedge-fund investor famed for profiting by shorting the subprime-mortgage market before its collapse, who later bet heavily on a revival of Fannie and Freddie. Mr. Paulson was also a top donor to the Trump campaign and counted both Mr. Trump and Mr. Mnuchin as investors in Mr. Paulson’s hedge funds in 2016, according to financial disclosures.

“Clearly, there has been value in having a Treasury secretary who has a deeper personal understanding of the housing-finance market than probably anybody else who has ever sat in his seat before,” said Timothy Mayopoulos, who was Fannie Mae’s chief executive for six years until last year.

[legalizeMJ]

Fannie and Freddie don’t make loans but buy them from lenders. They package them into securities that are sold to investors, and provide guarantees to make the investors whole if the loans default.