Fannie Mae's PR department might contend that the GSE isn't in the business of servicing loans, but everyone in the mortgage business knows that such a statement is, shall we say, a misnomer. The government-controlled secondary market giant—as a technical matter—owns the servicing rights to every loan it guarantees, but it's the GSE seller/servicer that owns the “contract” to process those loans.

The GSE might contend that it has no play in MSRs, but even its own recent 10-Q statement admits, “We (Fannie) agreed to purchase from Bank of America NA the mortgage servicing rights associated with up to $74 billion in unpaid principal balance of mortgage loans in our single-family guaranty book of business...”

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