Wilting Private MI Industry Intensifies Counterparty Risk for Fannie, Freddie
March 19, 2009
In the rubble of the massive financial losses reported by Fannie Mae and Freddie Mac over the last two weeks is mounting evidence of the growing counterparty risk faced by the two government-sponsored enterprises. Of particular concern is the exposure Fannie and Freddie have to the struggling private mortgage insurance business. “Most of our mortgage insurer and bond insurer...