To what risks are Fannie Mae and Freddie Mac exposed, and how do they manage them?
Fannie Mae and Freddie Mac have indisputable strong points. Due to the implied backing of the United States government, they enjoy virtually unlimited access to the capital markets at funding costs that are below market. Together they dominate their market. They pay no local taxes, only national. Their credit experience has been terrific. They are adept at public and governmental relations. Each has enjoyed tremendous growth and profitability.
