Topic: What Is The Role of Fannie MAE and Freddie MAC?
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Without Fannie Mae and Freddie Mac, housing prices would not be at a stabilized value like it has been for decades. Fannie Mae and Freddie Mac are part of the federal government, nor is it backed by government agencies like FHA, VA, and USDA loans. The two mortgage giants are government-sponsored enterprises (GSEs), the two largest purchasers of mortgage-backed securities. Fannie Mae and Freddie Mac will purchase mortgage loans from private lenders to keep liquidity in the mortgage markets.