What Is the Purpose of Fannie Mae and Freddie Mac?
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.
- What Is a Fannie Mae or Freddie Mac Loan?
- What Is the Difference Between a Legal and an Equitable Mortgage?
- What Are the Requirements of a Fannie Mae or Freddie Mac Loan?
- What Are Fannie Mae and Freddie Mac?
- What Is the Difference Between Fannie Mae and Freddie Mac?
- Can I Buy a Home Directly from Fannie Mae?
- What Is a Jumbo Loan or a Super Jumbo Loan?
- What Is a Reverse Mortgage?
- What Is the Difference Between a Registered Mortgage and an Equitable Mortgage?