Replies to post #740327 on Fannie Mae-No Politics (FNMA)

[bobstruths]

8.) GSE's were ordered to buy up all the crap subprime, alt-A, no-doc mortgages the TBTF banks pushed on unsuspecting borrowers and were holding, to clear up their insolvent books.

Don't get me wrong, because I believe this did happen. I remember reading the article published about Sept. 25, 2008 claiming FnF were being directed to purchase about $30billion worth of toxic mortgages every month however, I also remember people saying the claim of that article was not true!! Logic suggests it was true because just a few years after that FHFA sued those banks that sold toxic mortgages to FnF. Most suits ended up settling for about 30% of suit value for a total recoup of more than $90billion. Settlement checks were sent to FnF then that money was taken by Treasury in the Net Worth Sweeps.

Has anyone had access to a governmental document that says the claim that FnF were directed to purchase toxic mortgages is indeed true. My reason for wanting this info is because it would have caused FnF to take losses that required FnF to cover. And to cover those losses, FnF had to take additional draws from the Treasury.