As the residential mortgage market turned toward non-traditional products and spreads remained very tight on agency MBS, Fannie Mae and Freddie Mac continued to steer their new investment activity toward the growing subprime and Alternative A markets. According to a new Inside MBS & ABS ranking and analysis, a whopping $240.1 billion of non-agency MBS were set aside in securities classes designed to meet Fannie Mae and Freddie Mac conforming loan limits. That was up…