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Whither Fannie and Freddie?

By: Reber, Jim | Independent Banker, January 2011 | Article details

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Whither Fannie and Freddie?


Reber, Jim, Independent Banker


Analysis of the housing GSEs' staying power

The financial viability of Freddie Mac and Fannie Mae is of vital importance to the community banking industry. There is no debating this point.

There are several reasons for this, not the least of which is that community banks, through their investment portfolios, own more Fannie and Freddie debt than ever before. As fallout from the midterm election results continues, the rhetoric will likely build for a near-term solution to the GSEs' stay in purgatory.

Where do they stand from an ownership standpoint? What are their changing roles in mortgage finance? The GSEs' ultimate resolution will tangibly affect how community …

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