Friday, September 9, 2011
Fannie and Freddie Acquitted (Again)
The chart at left shows that the total Fannie loan book outperformed prime loans generated by private lenders and greatly outperformed private subprime loans. In other words, Fannie was like a super prime lender.
Calculated Risk has been following this issue and they just put up a new post reporting that Fannie's delinquency rate today is 4.08% and Freddie's was 3.51%. The overall market is 7.72%. That means private loans suffer much greater delinquency than GSE loans. This is, of course, consistent with the long time position of this blog that Fannie and Freddie were bit players in the subprime debacle.