Who is Fannie Mae and Freddie Mac

Dated: January 6 2022

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Fannie and Freddie, are they familiar to you?

Fannie Mae and Freddie Mac are nicknames. Fannie Mae is the Federal National Mortgage Association (FNMA) and Freddie Mac is the Federal Home Loan Mortgage Corporation (FMCC).

During the great depression in 1939 Fannie Mae was created to combat the lack of affordable housing. It helped provide continuous and steady funding for housing and introduced a new type of mortgage to the market: Long-term, fixed-rate and options to refinance at any time.

Freddie Mac was created for the purposes of expanding the secondary mortgage market and reduce interest rate risk for banks. 

Both are home mortgage companies created by the U.S. Congress and federally backed, providing liquidity, stability and affordability to the morgage market. Offering access to funds to thousands of banks, saving & loans and mortgage companies across the country.

They purchase mortgages from lenders and then repackage them into mortgage-backed securities for sale to investors on the secondary mortgage market. This helps ensure that home buyers and investors purchasing properties have a steady and stable supply of mortgage money. 

This makes secondary mortgage markets more liquid and lowers interest rates paid by the mortgage borrowers. 

A recent article just came out from Realtor.com indicating an increase in fees.
Please click below for more information. This will take effect April 1, 2022.

FHFA Raises Fees on High-Balance Second-Home Loans

Please feel free to reach out for any mortgage or real estate questions.
We are always here to help.

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Sharon Lucido

Both my Dad and my Father-in-law were Real Estate Brokers. From watching them, I learned that real estate is not just about buying and selling, it's an emotional process that should be handled with ho....

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