Replies to post #757971 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

And, according to the FDIC; “WMB securitized $2 Trillion in RMBS of which $500 Billion was sold to F&F .”

exactly

what you call RMBS -- Residential Mortgage Backed Security - is what I call Private Label (non F and F - TBTF banks) MBS

Indeed F and F bought such private label RMBS ---- and it choked them as that paper went south (as opposed to F and F choking on their own paper - even if that did get hurt - just no where near as bad as say first tranche PLMBS strips on 80-10-10 mortgages (i.e. wiped when value went down 10%)

(I admit to not knowing what you mean by the trustee must insure - but I am comfortable in my belief that F and F did not buy swaps to insure)

We may be lost in abbreviations and initials -- good luck to you