Fannie Dismayed

"Fannie Mae results are out (10-Q is here) and there is a lot to digest in short order. The pieces of the puzzle that I am immediately drawn to are the delinquency and loan performance numbers. My general observation is that because FNM is a political arm, they have never met a pig they couldn’t paint lipstick on. It’s so much easier for them to “modify” crap and pretend it’s cured. While normal lenders react to protect and seek recoveries, Fannie Mae just sits on an immense groundswell of “who knows what” and acts like it’s shit doesn’t stink."