GSEs Eye Subprime and Alt A MBS Purchases; TARP Shifts Focus
October 17, 2008
Fannie Mae and Freddie Mac will reportedly return to the non-agency mortgage-backed security market as investors in securities backed by subprime or Alt A mortgages under the direction of the Federal Housing Finance Agency. The move coincides with a $250 billion capital injection for struggling banks in lieu of MBS purchases by the federal government’s Troubled...