originator and servicer EMC to its portfolio and Lehman added four small mortgage lenders to its investment bank. By the early 2000s the corporate strategies centered on private mortgage securitization were fully in place. But Fannie Mae and Freddie Mac still enjoyed a dominant position in the market thanks to their funding advantage. What gave the private mortgage securitization machine its chance was another interest rate shock combined with a hiccup at the GSE.
