Freddie, Fannie "tied at hip" with mortgage insurers:

07/11/2008 | Wall Street Journal, The

Underwriters of private mortgage insurers are facing rising losses and falling share prices -- a problem for them but also for mortgage giants Freddie Mac and Fannie Mae. Freddie and Fannie can choose to continue buying mortgages that carry policies written by these weakened insurers, but that increases their risk of loss of payment. If they avoid working with them, they'll restrict their ability to buy mortgages, which would affect their earnings.

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