BETA
What happened in the 2008 crash
Leading up to 2008, lenders offered subprime mortgages to borrowers with poor credit. When home prices fell, millions defaulted, causing mortgage-backed securities to collapse and triggering a $700 billion government bailout of financial institutions.
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.