2 Thoughts on What’s a Fannie Mae loan?
  1. Reply
    Christin K
    February 3, 2014 at 10:32 am

    Fannie Mae is the Federal National Mortgage Association (FNMA). It buys mortgages from approved lenders and then guarantees them to the lenders. It doesn’t make your mortgage loan by itself.
    It makes money by servicing the mortgages to the mortgage COMPANIES not the consumer, in many layers of complex and over-burdened transactions that used to have the backing of the Federal Government against default–but that was changed in 1968. It used to be backed by the US Treasury, but it is now a privately held corporation. It is, however, still tied directly to the US Treasury department. The relationship it has to the Feds is very odd and complex and it has come under a great deal of scrutiny for its business practices and for “gaming” the numbers. That’s about the simplest explanation I can give you without going into deep and strange relationships and economic issues.

  2. Reply
    AskJoe
    February 3, 2014 at 11:22 am

    its another mortgage holding company held by the gov., same as freddie mac

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