[nsfyn55]

> It's actually owned by the government, Fannie Mae.

Oh my bad. So riddle me this. Does the government secure mortages it owns?

[yardie]

I'm not sure what the relationship is, because all government loans are secured by the federal government. In this case there is a lot more oversight. And the government has put more restrictions on how loans are packaged. Investors and lenders were playing a lot of games in the early 00s, taking advantage of securitization with almost no oversight.