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jonny [76]
3 years ago
8

What happens to Mortgage Giants Fannie Mae & Freddie Mac?

History
1 answer:
siniylev [52]3 years ago
3 0

Answer:

<em>The Federal Housing Finance Agency, regulator of Fannie Mae and Freddie Mac, announced that the two mortgage giants will now buy home loans that go into the government's forbearance program just after they close. Fannie and Freddie had not been doing that, and as a result, lending had tightened up dramatically. Fannie Mae and Freddie Mac created a liquid secondary market for mortgages. This meant that financial institutions no longer had to hold onto the mortgages they originated. They could sell mortgages on the secondary market shortly after origination. Selling mortgages freed up funds for creating additional mortgages.</em>

Explanation:

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