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To: mishedlo who wrote (48854)4/21/2004 11:34:52 AM
From: LLCF  Respond to of 74559
 
<That is why Greenspan encouraged variable rate loans IMO.
To prevent the FNM whipsaw. ng>

I believe that's right... ironically the FIXED rate mortgage is one of the ONLY insurances worth buying by the public [the free put].

FNM or FRE have never disclosed the size of their negative premium position [potential for whipsaw] in the market.

DAK