BETA
Who are Fannie and Freddie
Congress created Fannie Mae in 1938 and Freddie Mac in 1970 to keep the housing market liquid. Instead of holding your loan, local banks sell it to these giants, freeing up cash to make new loans.
Chapter 1
The birth of the 30-year loan
Chapter 2
How the money actually flows
Chapter 3
The invisible giant in the background
Chapter 4
Navigating your mortgage choices
Ch 3 · The invisible giant in the background
sloane American Mortgage System
Loans get sold! So banks can lend more for your new home!
sloane To be bought by Fannie or Freddie, a mortgage must follow highly specific guidelines.
Fun Fact
Fannie's name: Fannie Mae's name isn't real; it is a phonetic pronunciation of its acronym, FNMA, which stands for Federal National Mortgage Association.
sloane Wall Street packages individual mortgages into financial products bought by investors worldwide.