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GSEs Improve But Still Risky, Says FHFA
The U.S. Federal Housing Finance Agency says Fannie Mae and Freddie Mac have dramatically slowed their losses thanks in part to improved underwriting on the loans in mortgage-backed securities but still pose a risk to taxpayers, reports Bloomberg.
The U.S. Federal Housing Finance Agency says Fannie Mae and Freddie Mac have dramatically slowed their losses thanks in part to improved underwriting on the loans in mortgage-backed securities but still pose a risk to taxpayers. In its third annual report to Congress, the FHFA, which has regulated the government-sponsored enterprises since 2008, stated that the lenders recorded losses of $28 billion last year, compared with $93.6 billion in 2009.