What Is the Purpose of Fannie Mae and Freddie Mac?
Updated 21 days ago (March 6, 2026)
The primary purpose of Fannie Mae is "securitizing" mortgages, i.e. to free up funds at lending institutions and allow them to make additional loans to more homebuyers.
Freddie Mac has a similar purpose, although it purchases mortgages on the secondary market and passes those mortgages on to investors.
Both government-sponsored corporations were established to expand the housing market using different methods, including purchasing mortgages and creating mortgage securities.
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