Debt Consolidation USA Dissects Fannie Mae And Freddie Mac

Written by Administrator

An article discusses how Freddie Mac and Fannie Mae impact the economy, and largely the recent housing market. In an article titled “Fannie Mae And Freddie Mac, Boom Or Bust?” we research the role of the companies, and try to find out if they pose a threat to, or are truly assisting our economy.

This article begins by deciphering how the two companies are the two main businesses in the mortgage industry for the US.  Even though everyone has heard of the companies, there aren't very many who can know what their responsibilities are, and what an important part they have in financing US Homes.

The companies buy and keep mortgages, but don't give mortgages. The articles expands on how the two companies operate by promising a loan. It is very different to how private lenders give mortgages.

 

Those who receive a mortgage from a normal property owner sell the mortgage to Freddie Mac and Fannie Mae.

Also pointed out is that industry leaders are government run businesses, which were made by Congress. According to their policies, the companies' purpose is to give a dependable flow of affordable mortgages.

A lot of people think the companies run a big risk to the economy because they possess a lot of risk, in just the 2 businesses because they control a very large amount of interest rate and credit risk. Some people feel that the companies have a disporportionate advantage, because they are able to give rates that other companies are unable to offer.