How come Mortgage lenders For example Federal national mortgage association and you may Freddie Mac computer?

How come Mortgage lenders For example Federal national mortgage association and you may Freddie Mac computer?

How come Mortgage lenders For example Federal national mortgage association and you may Freddie Mac computer?

Since the Fannie mae and you can Freddie Mac constantly buy mortgages from banking companies and home loan companies, loan providers provides a constant cash source to save and make loans to help you the latest consumers. Loan providers also are incentivized to provide non-risky financing factors, such as for example a lot of time-name, fixed-rates mortgages, because they understand Fannie mae and you may Freddie Mac will most likely pick them. Read more…

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