Canada mortgage leads
March 17, 2010 7:49 am BusinessThe problem arose because Fannie Mae and Freddie Mac were key institutions in the delivery of mortgage insurance reserves and in buying subprime mortgages. End of the nineties, Fannie Mae and Freddie Mac were processed as instead of financial institutions.
The insurance premiums were too low for the risks involved. No rational customer would have bought except that subprime mortgage to a drastic discount, Fannie Mae and Freddie Mac bought it. No amount of securitization could diminish the fact that the subprime Canada mortgage leads were not good investments. The practice of securitization and the credibility of Fannie Mae allowed that the bad investments of the subprime mortgages will spread worldwide.