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BIG TROUBLE FOR FANNIE MAE AND FREDDIE MAC

August 21, 2008 · 1 Comment

Fannie Mae and Freddie Mac have provided a secondary market for mortgage loans for decades.  These corporations purchase home mortgages from mortgage lenders who originate mortgage loans.
Their missions are to provide cash flow to mortgage lenders, enabling the lenders to provide mortgage loans at affordable interest rates. 
They are in trouble.  Their shares are tumbling.  Rumors of a government bailout have contributed to the more than 50% loss in share value.  Some are even suggesting the corporations be disbanded.  For more information, please visit their websites or http://www.reuters.com/article/ousiv/idUSN2039370620080821.

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