The ability of Fannie, Freddie, and Ginnie to continue to securitize mortgages has largely depended on the confidence of investors that the government stands behind these organizations. As such, it was very significant when signs emerged in midsummer that investors were beginning to lose confidence in Fannie and Freddie.
As investors became increasingly concerned about the capital positions of these companies, the risk increased that they would not be able to roll over their debt as needed to finance their portfolios and purchase new loans.