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To: yard_man who wrote (126928)	10/2/2001 5:32:05 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Combined book of outstanding business (MBS plus loans held by FNM) is 1.4 trillion with 23 billion in capital. Not quite 100:1 (but close enough for the purposes of discussion, and that's just the LAST year's loan "book"). Of course, they won't have the rapid rate of "new loans" to dilute their soon-to-be-increasing foreclosures as unemployment skyrockets this quarter. Things should get extremely interesting by the time the reports come out for the quarter ending 12/31/01, especially since their CFO said last quarter that "credit-related losses might be at or near their low point. He added, however, that any near-term increases in credit-related losses would likely be small, and have little perceptible effect on Fannie Mae’s net income growth". We'll see about that, HO HO HO! Keep in mind that they also have a sizeable "credit guarantee" operation, which uses the same capital base as their loan portfolio. The size of the loans under guarantee is also in the trillions, so sum this with their other ops and you get leverage ratios in the 100's. fanniemae.com