Fannie, Freddie Backpedal from Non-Conforming Market That Continues to Put Pressure on Earnings
August 15, 2008
Don’t look for Fannie Mae and Freddie Mac to provide a great deal more support for the MBS market beyond continuing to churn out a heavy volume of new MBS as both government-sponsored enterprises are scrambling to deal with viral subprime and Alt A holdings and have little free capital to use to build up their portfolios. Fannie late last week announced it will stop buying Alt A mortgages by the end...