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Market Fall-Out From GSE Buyout Announcements 

Feb 11, 2010By

Yesterday, both Freddie and Fannie announced their schedules for buying seriously delinquent loans out of their guaranteed securities. The buyouts have been anticipated by the marketplace since the economic consequences of implementing FAS 166/167 as of this month became clear last fall. Freddie’s plan takes substantially all out this month; Fannies takes an unspecified amount out over a period of a few months starting next month.

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