Freddie Mae and Fannie Mac are shifting their investment instrument strategies in anticipation of losing market share due to Ginnie Mae's impending foray into the Real Estate Mortgage Investment Conduit market. Other secondary mortgage market players may want to change their plans as well.

Freddie Mac said that the emergence of the much-awaited Ginnie Mae Remic in early 1994 will crowd the agencies out of the more than $25 billion Ginnie Mae-backed Remic market. Moreover, the Remic will force the secondary market superpower Freddie to concentrate entirely on the conventional Remic market with its fellow government-sponsored enterprise giant, Fannie Mae.

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