If I understand correctly, the people who borrowed money and hold mortgages are not at risk if their mortgage holder or guarantor is insolvent. The guarantor GSEs (Freddie, Fannie) may indemnify a mortgage-issuer (like a bank) that is also a holder of deposits. So it is possible that further mortgage losses could lead to bank losses, I think is another way of putting it.
On Fri, Jul 11, 2008 at 1:48 PM, Its from Onion <
areda..._at_msn.com> wrote:
5 TRILLION in home mortgages at risk.