Freddie Mac Information Statement Supplement, 11 14 2002 Freddie Mac Information Statement Supplemen-2025

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MBSs consist of a group of mortgages that have been organized and securitized to pay out interest, similar to a bond or a bond fund. Theyre created by companies called aggregators, including government-sponsored entities such as Fannie Mae or Freddie Mac.
This means the ownership of your mortgage has been sold, but you make your monthly payments to the company that originated the loan. You get a letter in the mail telling you this, but you dont really understand it, as you make your payments to your bank or lender and are never the wiser.
An example of a mortgage-backed security is a pass-through security, where investors receive payments consisting of principal and interest from a pool of underlying mortgage loans.
Freddie Mac is a government-sponsored enterprise or GSE, created by the federal government to ensure access to home mortgage credit. Freddie Mac has a statutory mission to provide liquidity, stability, and affordability to the U.S. housing market. Freddie Mac does not make loans directly to homebuyers.
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.
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MBS issued from Fannie Mae, Freddie Mac or Ginnie Mae are called agency MBS, and they carry a government-backed credit guarantee. Other companies can and do aggregate loans to create mortgage-backed securities called nonagency MBS. Theyre not guaranteed by the government.

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