icandoitdon

Fannie May: The Day That Alt-A Died

thanks for clarifying.

i would argue that any mortgage loan on the books of a lender that doesn't have rock-solid proof of inome is junk, absent a reasonable equity stake, e.g. 10-20% many of these loans had little or nothing down.

FNM and FRE had too little capital to support the risk of non-conforming loans on their balance sheet, enabled by their monopoly access to government-insured money. absent that, they could not have existed.