Who are Fannie Mae and Freddie Mac and what do they do?

Fannie Mae and Freddie Mac are government-chartered companies with a mission to provide a stable source of funding to the U.S. housing and mortgage markets. The companies purchase and securitize mortgage loans to ensure that money is consistently available to financial institutions that lend money to home buyers.

Additional information is available at the following web pages:

Freddie Mac

Fannie Mae

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01798