Word on the Street is that FNM and FRE are using a significant part of their cash holdings to "buy out" delinquent mortgage loans from pools they insure. This move returns cash to investors and removes it from the Fed Funds market where FNM and FRE are a big supplier of funds at the lowest rates (since the Fed pays them no interest on their reserves).
Word on the Street is that FNM and FRE are using a significant part of their cash holdings to "buy out" delinquent mortgage loans from pools they insure. This move returns cash to investors and removes it from the Fed Funds market where FNM and FRE are a big supplier of funds at the lowest rates (since the Fed pays them no interest on their reserves).
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