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To: Jim Willie CB who wrote (29228)	2/26/2003 12:05:44 PM
From: Oblomov	Read Replies (1) \| Respond to of 74559

I see... so what you are saying is that there is no way for a financial analyst to really understand the quality of the loan book, and thus the predictability of future earnings. Thanks.

To: Jim Willie CB who wrote (29228)	2/26/2003 12:40:47 PM
From: energyplay	Read Replies (1) \| Respond to 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.