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  • Comment Detail

  • Date: 08/07/18
    First Name: Jeffrey
    Last Name: Wood
    Organization: Personal
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AA95

  • Comment

    Since Fannie and Freddie are not banks, they should not be capitalized as banks and should not even be in the same category as banks. Since the GSEs do not make any loans and do not speculate with depositors money (because they have no depositors) they should be allowed much lower capital levels than banks are required to have.

    Every security that Fannie and Freddie offers to investors is backed by real estate worth as much as or more than the security. The recent housing crisis proved, beyond any doubt, that Fannie and Freddie would continue to operate, continue to cash flow, and continue to function well even if housing values declined 25%. Fannie and Freddie’s securities are fully collateralized; there is no need for a large capital cushion.