Falcon Says GSEs Face Growing Pains In Managing Portfolio, Prepayment Risks
January 17, 2003
Fannie Mae and Freddie Mac may be challenged to effectively manage the risks associated with their massive and continuously growing portfolios of long-term assets, according to their chief regulator. The two companies currently have a total of $1.3 trillion in mortgage investments, seven times their holdings at the end of 1992. Since virtually all of their mortgages can be prepaid at any time without