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The Prospector spoke to Douglas Duncan, the senior vice president and chief economist at the US Federal National Mortgage Association, which is commonly known as Fannie Mae. It is an organisation founded in the 1930s in response to the Great Depression, but is now a private company which acts in the mortgage market to help lenders maximise their borrowing capacity by securitising mortgage debt and issuing residential mortgage-backed securities.

Duncan is responsible for managing Fannie Mae’s Economics & Strategic Research Group and the conversation covered a broad spread of subjects. What follows is the final part of the interview—the previous…

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