Fannie Mae Compelled to Clamp Down on Credit After Another Huge Quarterly Loss
August 14, 2008
Fannie Mae is ratcheting up its defense for the second half of the year and beyond, after the government-sponsored enterprise continued to hemorrhage red ink in the second quarter. Perhaps the biggest step involves Fannie’s decision to quit buying Alt A loans by the end of the year. Fannie has already tightened the underwriting for Alt A loans, causing the volume of new...