Replies to post #28668 on Fannie Mae-No Politics (FNMA)

[rjanderson383]

The idea of winding down is to get more competition in the GSE market.

Also, making GSE's private, to ensure they are not backed by Tax dollars.


So essentially the end result is a more competitive market with FNMA being private.... why is this not the case, weeelllllll.

The profits aren't high enough to encourage these companies to enter the GSE market. So the real question is how do u raise the profit level??? and if you raise the profit level, FNMA will also have higher profits.

In summary:
If FNMA becomes smaller and private in a competitive market, they will make more money, or at least margins will be much better. But hey, were still talking billions.