Thursday, June 30, 2016

Fannie Mae, Freddie Mac look for more ways to share credit risk

The federal government is looking for additional methods and mechanisms that it can use to transfer credit risk currently borne by Fannie Mae and Freddie Mac, and therefore the American taxpayers, to private investors. Here’s a breakdown of the history of Fannie and Freddie’s risk-sharing deals, and a look at what the GSEs want to do next.

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