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One big difference between Ginnie Mae and Fannie Mae is that Ginnie Mae is owned by the government. It is part of the Department of Housing and Urban Development. Fannie Mae and its sibling, Freddie Mac, are private corporations owned by shareholders.
Despite the similarity in their names, Fannie Mae and Sallie Mae are not related. Sallie Mae is a consumer bank that offers student loans and other banking services. Fannie Mae buys mortgages from lenders, giving them the cash they need to give mortgages to more people.
Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market. Learn more about our business and our role in the nations housing market.
Fact checked by Kirsten Rohrs Schmitt. Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress. Neither institution originates or services its own mortgages. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.
Freddie Mac doesnt provide loans directly to home buyers but instead buys bundled mortgages from banks and other mortgage originators. By bundling and selling mortgages to Freddie Mac as mortgage-backed securities, banks can free up their capital to lend money to more Americans.

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Fannie Mae and Freddie Mac buy mortgages from lenders and either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending.
All loans backed by Fannie Mae and Freddie Mac are typically conventional loans, which are not insured by the government.
Fannie Mae, Ginnie Mae, and Freddie Mac are all government-sponsored mortgage companies. These private companies are referred to as secondary market lenders that back loans and set guidelines.

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