Testimony of Robert J. Levin, April 9, 2010
In his prepared testimony before the Financial Crisis Inquiry Commission on April 9, former Fannie Mae senior exeuctive Robert J. Levin quoted from an article written by Mr. England for Mortgage Banking in 2006 to describe the changes in the securitizations market that influenced strategic decisions by Fannie Mae to take on riskier assets.
The quoted material appears below:
A change in the mortgage-backed securities market that began more than two years ago appears to have completely reshuffled the industry's desk of cards. Now, issuers of private-lable residential mortgage-backed securities (RMBS) are holding the aces that were once held by the government-sponsored enterprises, Fannie Mae and Freddie Mac. Once a junior -- but powerful -- player in the market, private-label residential mortgage-backed securities are now the leading force driving product innovation and the net overall volume of mortgage origination. Further, it appears that the new dominant role for private-abel RMBS may be here to stay.
The quote is from an article titled "The Rise of Private Label," which can be found at this link: