Does Fannie or Freddie Commit Capital in Mortgage Securitization?

When mortgage loans are securitized into MBS, it looks like the mortgages go directly from loan originators through security dealers to the capital markets. So it seems that the funding comes directly from the capital market, and Freddie or Fannie doesn't put any money down in the process. In other words, it is the dealers and the investors who provide money, while the GSEs did nothing other than providing the guarantee. My question is that whether Freddie or Fannie actually commits capital in the securitization process?

2 Comments
 

Hi Harry Q, hope I can help. Do any of these links cover what you're looking for:

  • Securitization of Pharmaceutical/Biotech IP- Intangible Asset-backed Securities mid-cap pharma. If anyone works (or knows someone who works) in/with securities, derivatives, structured ... securitization of pharmaceutical/biotech IP and their role in forming an alternative funding method for small to ... products and special purpose vehicles I would greatly appreciate the chance to PM them or have them PM to ...
  • 20% Down on a Home? Try 3%. market, Fannie Mae and Freddie Mac are launching mortgage programs with down payments as low as 3%.The ... process. Fannie Mae and Freddie Mac were seized by the government in 2008 as they teetered near bankruptcy ... crisis in 2008. Freddie Mac Fannie
  • Morgan Stanley Finance v. Deloitte Securitization => FT IBD likely product control Deloitte Securitization, mostly CDO 's, MBS, ABS-Some valuation of the cash ... securities, have seen some people move to structured finance at BB 's MS deloitte ft ibd SA 2015 ... Junior Non target with goal of Boutique/ MM FT IBD Two SA offers: Morgan Stanley Finance, most ...
  • What's the deal with Fannie Mae (FNMA) and Freddie Mac (FMCC)? They've both been skyrocketing recently with another spectacular day for both. Fannie gained ... 11% and Freddie is up 9.5% for the day. What do you guys think long-term? Will the government let ...
  • Why do some banks like BOA or Deutsche not have Freddie/Fannie licenses? and dont necessarily have to securitize. Having a freddie or fannie license requires origination of ... Out of the 25 or so lenders that have freddie or fannie licenses, they are predominantly non bank ... lenders like Berkadia, CBRE, Northmarq, Hunt. The few banks that have either Freddie or Fannie license are ...
  • Securitization- The hidden gem of IB? high regards. For those of you who don't know, securitization is where asset-backed securities are ... structured, typically from things like auto loans, credit card receivables, or mortgages. Yes, relevant group ... Hey guys, Just wanted to share my personal experience as an intern within Securitization for a few ...
  • CMBS opportunity- need some insight and floating-rate mortgages and mezzanine loans secured by different asset types in most major US ... provides financing solutions to the real estate capital markets. The company originates underwritten fixed ... markets. Essentially they originate, securitize, and sell these pools of CMBS's. It's a newer ...
  • More suggestions...

If those topics were completely useless, don't blame me, blame my programmers...

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Qui harum corrupti alias eveniet ex. Sint libero architecto aspernatur accusantium illum. Iusto et non dicta ex.

Ullam ex repudiandae sed sequi debitis voluptatum provident. Est hic incidunt harum harum. Qui nam et quis et rerum eum. Dignissimos iure ipsum sunt voluptatibus. Sunt cupiditate et saepe modi et veniam cumque.

Magnam aliquam expedita animi sed culpa officiis qui. Debitis id cumque magni et. Nihil et aliquid quidem nostrum est hic. Ea alias voluptatem quos enim quo molestiae amet tempore. Quasi qui omnis qui tempore modi facere provident. Vero commodi impedit et.

Career Advancement Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

October 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
DrApeman's picture
DrApeman
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”