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Who are FNMA & FHLMC?

April 26, 2017fhlmc fnma

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Who are FNMA & FHLMC?

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FNMA & FHLMC, also known as Fannie Mae and Freddie Mac respectively are quasi government institutions created by Congress to purchase conventional home loans from financial institutions and mortgage bankers. FNMA and FHLMC are the primary buyers of mortgages in the secondary market and they secure said loans to sell major investors such as pension funds, insurance companies, etc. This creates much needed funds for future home owners by recycling funds back to the lending institutions.