The Federal National Mortgage Corp.'s recent announcement that it intends to buy as much as $1.0 billion of housing bonds by yearend has significant repercussions for investors, issuers, and Wall Street underwriters.

When the government-sponsored enterprise, better known as Fannie Mae, won the competitive bid on the Minnesota Housing Finance Agency's $47.5 million sale of revenue bonds last week, it raised a number of issues: most notably, how can private firms compete with a government-sponsored enterprise, and what impact will a major push from Fannie Mae have on pricing in the housing sector?

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.