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The GSEs only buy loans that are conforming to repackage into the secondary market, lowering the demand for non-conforming loans. Originally, Fannie had an 'explicit guarantee' from the government; if it got in trouble, the government promised to bail it out. This changed in Ginnie Mae credlt split off from Credit card capital one. Ginnie retained the explicit guarantee.
Fannie, however, became a private corporation, chartered by Congress and with a direct line credit loan bad boat credit to the US Treasury. The charter also limited their business activity to the mortgage market.
In this regard, oje they were a private company, they could not operate like a regular private company. Fannie Mae received no direct government funding or backing; Fannie Mae securities carried no actual explicit government guarantee of being repaid.
This was clearly stated in the law that authorizes GSEs, on the first credit car loan themselves, and in many public communications issued by Fannie Catd. The certificates did not legally constitute a debt credit card capital one obligation of the United States or any of its agencies or instrumentalities other than Fannie Credit card capital one.
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