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Government sponsored enterprises (GSEs) in the mortgage market are the Federal Home Loan Mortgage Corporation ("Freddie Mac"), the Federal National Mortgage Association ("Fannie Mae") and the Government National Mortgage Association ("Ginnie Mae"). The GSEs facilitate liquidity in the mortgage markets by purchasing conforming mortgages from lenders, securitizing them, and onselling them into the secondary financial markets. Freddie Mac and Fannie Mae are both privately owned corporations, with an implicit government guarantee. This means that if they become insolvent, the US Government is very likely to step in. Freddie Mac and Fannie Mae hold almost 20% of the mortgages in the market. Ginnie Mae is a wholly owned government enterprise, established in the late 1960's to facilitate home ownership by low to moderate income families.

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What services do residential mortgage brokers offer?

They represent products offered by the largest financial institutions that are indirectly supported by government sponsored secondary market institutions, such as Fannie Mae and Freddie Mac


How do you abbreviate Freddie Mac?

Freddie Mac is abbreviated as "FHLMC," which stands for the Federal Home Loan Mortgage Corporation. This abbreviation reflects its status as a government-sponsored enterprise involved in the mortgage market. The acronym is commonly used in financial contexts and discussions related to housing finance.


What you need to know about Freddie mac?

Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise (GSE) created to support the U.S. housing market by providing liquidity, stability, and affordability to the mortgage market. It buys mortgages from lenders, packages them into mortgage-backed securities, and sells them to investors. This process helps ensure that lenders have the capital needed to offer more home loans. Freddie Mac plays a critical role in promoting homeownership and affordable housing options across the country.


What is one of the disadvantages of getting a government-sponspored mortgage?

One disadvantage of getting a government-sponsored mortgage is that it often comes with stricter eligibility requirements and regulatory processes compared to conventional loans. This can lead to longer approval times and more paperwork, making the home-buying process potentially more cumbersome. Additionally, borrowers may face limits on the amount they can borrow, which could restrict their options in a competitive housing market.


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The main types of health insurance companies in the market are private health insurers, government-sponsored plans like Medicare and Medicaid, and employer-sponsored health insurance. Each type offers different coverage options and benefits.

Related Questions

What services do residential mortgage brokers offer?

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What purposes can a government serve in a market economy?

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