Fannie Gets Back in the Wrap Party with $375 Million Deal Backed by Recycled FHA Loans
December 4, 2009
The agency wrap business, which had been a major stratagem used by Fannie Mae and Freddie Mac to get into the subprime and Alt A MBS market, has fallen on lean times since those markets collapsed in 2007. Bank of America used a Freddie MBS guaranty earlier this year to convert $4.71 billion of seasoned prime loans into securitized form, although the transaction was retained on the bank’s portfolio...