Reassessing the government-sponsored entities
The government is currently debating what role the government-sponsored entities (the GSEs) will have in the future of mortgage finance. Fannie Mae and Freddie Mac have historically been a conduit for mortgage lending, and their guarantee of mortgage-backed securities makes possible the 30-year mortgage that most Americans take as their birthright. We’ll look at the future of mortgage finance in this multi-part article.
We’ll start with a brief introduction to Fannie Mae and Freddie Mac and their role in mortgage finance.