Among the other actions, the board voted to reaffirm the importance of having
an explicit federal guarantee available to borrowers in the conventional mortgage loan market, as Fannie Mae and Freddie Mac provide now.
Not exact matches
The credit risk on the collateral can also be substantially reduced by holding
federal government securities or investments that carry an
explicit or implicit
guarantee from the government.
My understanding is that CDIC doesn't have an
explicit guarantee from the
Federal Government either, though one could argue that the threat of a run on banks will compel the Government to step in, just like the US Government did when it appeared that money market funds were about to break the buck.
In a speech to the
Federal Reserve Bank of Chicago's annual banking conference, DeMarco stated that one option would be to re-create a model similar to that used by the two government - sponsored enterprises before their collapse, but with an explicit guarantee from the federal government instead of an implic
Federal Reserve Bank of Chicago's annual banking conference, DeMarco stated that one option would be to re-create a model similar to that used by the two government - sponsored enterprises before their collapse, but with an
explicit guarantee from the
federal government instead of an implic
federal government instead of an implicit one.
As the
federal government considers reform of the secondary mortgage market, the Board reaffirmed NAR's position that any successor to Fannie Mae or Freddie Mac maintain an
explicit government
guarantee to ensure that mortgage funds remain available to credit - worthy homebuyers, even during economic downturns.