[lendaddy]

Does it really matter if they are the primary or secondary? If the primary market writes them because they know Fannie will buy them then isn't Fannie really the problem?

Also, I show that Fannie and Freddie have assets of about 800 billion each for a total of 1.6 trillion. Where did you get the 5.3 trillion figure?

182 billion is ~11% of the total holdings with my numbers. This is not insignificant.

Also, banks knowing they could wholesale them to Fannie/Freddie certainly would increase the number being written.