As readers may know, Fannie Mae and Freddie Mac are stockholder-owned corporations that, according to their websites, purchase mortgage loans complying with certain guidelines. Those mortgages are then packaged into securities that investors can purchase.
Some commentators may question the federal government’s level of involvement in the mortgage market. At least two entities that guarantee mortgages, Fannie Mae and Freddie Mac, are government sponsored. That involvement may raise certain expectations and policy questions.