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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Jim Willie CB who wrote (29228)2/26/2003 12:40:47 PM
From: energyplay  Read Replies (1) of 74559
 
It was my understanding that the loans were geographically diversified and to some extend the credi quality was mixed, so that Junes batch of loans was similar to Mays. The idea being ot create a uniform product, so that if you bought a dozen of them, the aggeregate behaviour was predictable with a certain confidence level.

Fannie Mae has done it job - prehaps too well.

In additon to reselling packaged loans, Fannie sell bonds and runs it 's own HUGE portfoilio of motgages.
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