Fannie Reduced Holdings of Rival’s MBS in 2002, But Freddie Was Different Story
June 6, 2003
Fannie Mae’s and Freddie Mac’s heavy investment in each other’s mortgage-backed securities continued in 2002 as both government-sponsored enterprises struggled to substantially grow their retained portfolios. But while Fannie significantly increased its purchase of its own MBS and reduced its stake in its rival’s mortgage securities or PCs, Freddie was a different story. The GSE posted only a modest increase in its