#Fannie mae foreclosures the camden frontier michigan area mac
Freddie Mac purchases mortgage loans from smaller banks and credit unions, also known as “thrift” savings institutions. Fannie Mae and Freddie Mac are regulated under the conservatorship authority of the Federal Finance Housing Agency.įannie Mae typically buys loans from larger commercial banks. Ginnie Mae exists to solely guarantee the security of the loan. The criteria and decisions for all of the aforementioned are executed by the lender. Unlike Fannie Mae and Freddie Mac, Ginnie Mae does not participate in determining eligibility for loan modifications, make loans to potential homebuyers, purchase loans from other lenders or assist potential homebuyers with purchasing a home. Fannie Mae and Freddie Mac loans are typically conventional mortgage loans. Ginnie Mae guarantees mortgage backed securities of those loans that are the following: FHA-Federal Housing Administration VA-Veterans Affairs RD-Rural Development and PIH- Office of Public and Indian Housing. This encourages lending institutions to be careful in selection of how and who loans are dispersed to since they may be financially responsible for the losses on a bad loan. This means that when borrowers become delinquent on loan obligations, Fannie and Freddie are responsible for the losses on the loans they guarantee, while Ginnie Mae issuers become financially responsible for the delinquent debt. Ginnie Mae is known as a guarantor for federally backed loans, while Fannie and Freddie guarantee loans themselves. Ginnie Mae is housed within the Department of Housing and Urban Development and provides guarantees to cover loses lenders would suffer through federally insured or guaranteed loans, should a residential homeowner default on their borrower obligations. Freddie Mac and Fannie Mae are publicly-traded corporations that securitize residential mortgages and sell them to investors as mortgage-backed securities.įreddie Mac and Fannie Mae are not government agencies, but Ginnie Mae is. Freddie Mac and Fannie Mae are known as Government Sponsored Enterprises, private companies that are sponsored by the US Government.
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