The risk is there. The connection is there. Why are they treated as off-balance-sheet when in other parts of the world they are not? What do you think? Let us know.
Since 2008, the four lenders have faced demands to take back $67 billion of mortgages sold to securitizations backed by Fannie Mae and Freddie Mac. They repurchased a majority of those and settled some disputes because the loans hadn’t met agency underwriting standards.