Market estimates of cumulative losses of $400 billion at Fannie Mae and Freddie Mac are "overly pessimistic," declared analysts at Keefe, Bruyette & Woods (KBW).

KBW estimates total losses of $200 billion, using what it says are conservative assumptions. The analysts said this includes their belief that the Home Affordable Modification Program will not be very effective.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.