Fannie and Freddie Step Up MBS Purchases, But GSEs Still Face Competition From Banks
September 27, 2002
Fannie Mae and Freddie Mac managed to increase their mortgage-backed security purchases last month, a move that kept their large retained mortgage portfolios growing. But the two government-sponsored enterprises face an uphill battle to continue growing their holdings amidst a wave of record-high prepayments that appears likely to buffet their portfolios in the months ahead. Equally important, Fannie and Freddie are