What Benefits Do Freddie Mac And Fannie Mae Get From Backing Mortgages?
how do they make money? do they get a percentage of mortgages they back?
Tags: Benefits, fannie, freddie, Mortgageshow do they make money? do they get a percentage of mortgages they back?
Tags: Benefits, fannie, freddie, Mortgages
I don’t know. But there is talk now that the Federal Government may be taking over both those institutions because of the extremely high rate of foreclosures this year.
Vote republican again. Bush has made this a GREAT place to live.
They buy mortgages from brokers, banks and Savings and Loans. They then put a few thousand loans together in a package and sell to an investor. They usually pay the investor an interest rate about one-half of one percent less than the loan is charging. They keep about one-half of the spread between the original loans and the rate earned by the investors, and the original lender gets about one-half.