Ranieri and Co intended to transform the “whole loans” into bonds as soon as possible by taking them for stamping to the United States Government. Then they could sell the bonds to Salomon’s institutional investors as, in effect, US government bonds. For that purpose, partly as the result of Ranieri’s persistent lobbying, two new facilities had sprung up in the federal government alongside Ginnie Mae. They guaranteed the mortgages that did not qualify for the Ginnie Mae stamp. The Federal Home Loan Mortgage Corporation (FHLMC, called Freddie Mac) and the Federal National Mortgage Association
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