They contributed to the financial crisis and real estate downturn, by loosening underwriting standards, buying and guaranteeing risky loans and increasing purchases of mortgage-backed securities. How Do Fannie And Freddie Impact Real Estate? In 2008, due to mismanagement resulting in billions of dollars of losses, Fannie and Freddie were taken over by the government. They buy mortgages from lenders, so the lenders can use the money to issue new home mortgages. They were originally created to raise homeownership levels and increase the availability of affordable housing.įannie and Freddie don’t sell mortgages directly to homeowners. 
Freddie Mac is the Federal Home Loan Mortgage Corporation. Who Are Fannie Mae And Freddie Mac?įannie Mae is the Federal National Mortgage Association.
If you’re ready to buy a home and are looking to apply for a mortgage, you may want to learn more about these entities and how they can impact how much your mortgage will cost you.
Ready to Apply For a Mortgage in WA, OR, CO, or ID?įannie Mae and Freddie Mac have been in the news quite a bit over the past few years, so it’s a good time to do a refresher on who they are and what role they play in the real estate market. How Do Freddie Mac and Fannie Mae Differ?. How Do Fannie And Freddie Impact Real Estate?.
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