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slamgirl [31]
4 years ago
10

Which of the following types of institutions has historically been the largest purchaser of residential mortgages?

History
1 answer:
vredina [299]4 years ago
6 0

Answer:

The correct answer is c) Government sponsored enterprises

Explanation:

A Government sponsored enterprise is a type of financial institution created by the US Congress to provide public access to financial services and increase credit flow to certain economic sectors. Historically, this institutions have played a very important role in the mortgage markets.

GSEs were created as a response to the Housing crisis in 1932, with the enactment of the Federal Home Loan Bank Act, designed to serve as a reserve credit system to support housing finance.  

The Housing GSEs include the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Bank System (FHLBank System).

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