(Corrects spelling of Whalen throughout.)
Nov. 7 (Bloomberg) -- Fannie Mae and Freddie Mac may have hundreds of billions of dollars of unrealized losses, Christopher Whalen, managing director of Institutional Risk Analytics, said.
“There’s tens, hundreds of billions of dollars in unrealized losses inside Fannie and Freddie,” Whalen said today in an interview on Bloomberg Radio with Ken Prewitt and Tom Keene.
“This is one reason they don’t want to let a lot of those older high-coupon, mid- to lower-income borrowers prepay through refinancing, because the losses would increase and the Treasury would have to write a bigger check every quarter,” Whalen said.
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