Thursday, July 8, 2010

How do GSEs like Freddie Mac and Fannie Mae make it easier for Americans to buy homes?

I understand that they buy and guarantee mortgages, and sell them as repackaged credit products. I see how it provides liquidity, but how does this make it easier for Americans to buy homes? What role does the federal government play in this process.





Thank you for your answers!How do GSEs like Freddie Mac and Fannie Mae make it easier for Americans to buy homes?
they set underwriting guidelines that lenders must follow in order to sell on the secondary market

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