In the News

• https://www.nytimes.com/2025/03/26/realestate/fannie-mae-freddie-mac-loans-pulte.html

• “We owned or guaranteed mortgage assets representing approximately 25% of total U.S. residential mortgage debt outstanding as of September 30, 2024” - https://www.fanniemae.com/media/54826/display
• “It does not originate loans or lend money directly to borrowers”
• Four or fewer residential dwelling units
• Credit Default Swaps
• Synthetic CDOs
• Money Market Funds
• Refinancing
• Hard-money lenders:
  • Didn’t offer first-lien mortgages
• Credit Enhancements

Questions

• Why didn’t Countrywide initially have the ability to sell mortgages tot Fannie Mae? (Chain of Blame, pg. 33)
• Why was the interest rate in savings and loans set at 5.75%?
• Who did Fannie Mae borrow from?
• Why did Fannie Mae initially only buy FHA approved loans?
• Did private MBS insure against default?
• Why did Wall Street want to compete with Fannie?