Fannie and Freddie Tossed as Life Preservers To Floundering Non-Agency MBS Market
October 16, 2008
Fannie Mae and Freddie Mac may be heading back into a market they have resolutely avoided so far in 2008 as government-appointed hazardous waste cleanup specialists for “toxic” mortgage securities backed by subprime, Alt A and other nonconforming loans. The two government conservatorships will reportedly buy up to $40 billion a month in non-agency mortgage-backed securities as...