Fannie mae and Freddie Mac: An overview Fannie mae and Freddie Mac: An overview The new Federal national mortgage association, popularly known as “Fannie mae,” and also the Government Financial Mortgage Corporation, “Freddie Mac computer,” will be two authorities-paid businesses (GSEs) chartered of the You.S. Congress inside 1938. Neither starts otherwise properties its own mortgage loans. As an alternative, they purchase and you will be sure mortgages approved by way of lenders regarding the supplementary financial markets. The determine along side You.S. a property es Federal national mortgage association and you can Freddie Mac hardly facial skin with the spending sites otherwise monetary reports statements. But really, this type of people was the fresh new pillars on which the latest American construction markets of your own past 80 ages have largely come oriented. The swing lies in securitizing money, effortlessly converting individual mortgage loans into tradable ties. Which lingering circulate out-of funding lets loan providers to increase so much more borrowing, sooner shaping rates of interest and you will to make homeownership available to many Us citizens. Let me reveal a glance at how they work, its spots in the 2008 financial crisis, the things they’re doing to have tenants and you may home owners during the COVID-19 pandemic, as well as their prospects in the years ahead.閱讀全文 “Fannie mae and Freddie Mac: An overview”
