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This is because both Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market, making the demand for a non-conforming loan much less. By virtue of the laws of supply and demand, then, it is harder for lenders to sell the loans, thus it would cost more to the consumers (typically 1/4 to 1/2 of a percent.)
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The need for a government backstop for the U.S. mortgage market will remain, Treasury Secretary Timothy Geithner told the audience at Tuesday's future of home financing conference in Washington, D.C.
The Federal Housing Finance Agency (FHFA) is an independent federal agency in the United States created as the successor regulatory agency of the Federal Housing Finance Board (FHFB), the Office of Federal Housing Enterprise Oversight (OFHEO), and the U.S. Department of Housing and Urban Development government-sponsored enterprise mission team, [3] absorbing the powers and regulatory authority ...
Fannie Mae and Freddie Mac: Differences. Fannie and Freddie also have some differences. One of the most significant is where they get their loans. Fannie Mae mostly buys loans from large ...
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