What continues to be said at legal hearings is that Fannie Mae and FHFA really had no knowledge that the credit loss situation was changing dramatically when they came up with the new amendment. This document proves that is a pure lie.
What this shows at the end of august 2011 Fannie’s worst path was 109b five year loss.
Worst scenario provided the us economy failed by Dec 2011 that dropped to 75b and the trajectory turned significantly in the worst case scenario.
As a matter fact, Fannie Mae came out nowhere near taking $75 billion in credit losses.
