Federal National Mortgage Association (FNMA) is described by Yahoo!Finance as a provider of “…liquidity and stability support services for the mortgage market in the United States. It securitizes mortgage loans originated by lenders into Fannie Mae mortgage-backed securities (Fannie Mae MBS). The company operates through two segments, Single-Family and Multifamily.”
The quote inside of the chart is from Robert L. Rodriguez, former manager of the FPA Capital Funds. Rodriguez was specifically commenting on what was going on at FNMA at the time. The stock of FNMA has declined –97.50% since Rodriguez’s commentary.