Where your mortgage goes after closing, and why it gets sold
Fannie Mae and Freddie Mac
How it flows
Fannie Mae and Freddie Mac buy conventional mortgages that meet their guidelines from lenders, package many into securities and guarantee investors timely payment. Because so many lenders sell to them, their guides shape everyday lending rules. Both are overseen by the Federal Housing Finance Agency.
Last reviewed against the primary sources listed below.
What this means for you
- Your lender may follow Fannie or Freddie rules even though you never deal with them directly.
- Programs such as some loan assumptions and payment help can depend on which one owns your loan.
Questions about loan sales
Are Fannie Mae and Freddie Mac lenders?
No. They buy and guarantee loans made by lenders; they do not lend directly to consumers.