OTCPK:FNMADiversified Financial
White House Pushes Fannie Mae Deeper Into MBS Market And Policy Risk
White House directs Federal National Mortgage Association (OTCPK:FNMA) to inject US$200b into the mortgage backed securities market.
Policy move targets lower borrowing costs and expanded liquidity for homebuyers and lenders.
Initial effects include a surge in mortgage applications and reduced mortgage rates across parts of the market.
Intervention raises questions about long term implications for housing finance and Fannie Mae's operating model.
Fannie Mae sits at the core of the US...