Struggling with a run of huge losses well into its fifth year, Fannie Mae and Freddie Mac now confront the added challenge of worsening financial condition among private mortgage insurers, one of the few backstops the government-sponsored enterprises have to offset some of their losses. Fannie noted in its 10-Q filing with the Securities and Exchange Commission that the “current weakened condition” of its mortgage insurer counterparties has created “an increased risk that the insurers will fail to fulfill their obligations” to reimburse the GSE for its ...