For a long time I was convinced that Fannie's credit criteria were slightly more stringent than Freddie's.
It appears I was wrong.
Fannie and Freddie give cumulative default curves in their latest results. The 2006 pool (which is very bad at both) has 115 points of cumulative default at Freddie and 148 points at Fannie. The cumulative default curves are pointing to the sky at both companies.
This occurs across almost all vintages.
Is there anyone knowledgeable who can explain to me why the cumulative defaults are so different between companies.