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Fannie May: The Day That Alt-A Died

alt-a loans are otherwise known as "alterntive-documentat... loans for borrowers who don’t have proof of income from traditional employment. a credit check replaces income verification.

and until now, gse's have always been in this space. 11% of fannie's portfolio consisted of such loans, and contributed to half of their credit losses in the current quarter. they're not called "liar loans" without reason.