An April 25, 2007, story, “Debt a growing factor in Freddie’s prime loan delinquencies,” overstated the investment that government-sponsored entities (GSEs) Freddie Mac and Fannie Mae have in private label mortgage-backed securities (MBS) backed by subprime loans. At the end of 2006, the GSEs held about $322 billion in AAA tranches of private-label MBS, of which about $170 billion was backed by subprime loans. The story also understated the GSEs’ total MBS investments, which stood at $1.05 trillion at the end of the year. Inman News regrets the error.
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