Replies to post #568258 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

yes
F and F own the loans - but they never LEND that money

F and F are not lenders

They buy loans - re package and borrow using the loans as collateral

How is that lending - which is the function I disagreed with

I buy a loan - I own a loan - GM IBM MBS paper --- but I am a buyer or investor or holder NOT a lender

F and F are holders - MBS makers - and borrowers - where thy borrow money from investors and GIVE them paper …. they do not lend money (they exchange money for bank mortgage paper - I do not view that as any sort of loan as there is no future obligation of either party to the other --- besides the bank being honest about the description of the loans it sold to F and F )