Does Fannie or Freddie Commit Capital in Mortgage Securitization?

Harry Q's picture
Rank: Chimp | 5

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?

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Apr 17, 2019

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

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  • More suggestions...

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

May 28, 2019
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