Fannie Mae and Freddie Mac held a competitive advantage over other mortgage lenders primarily because
A) they were established as non-profit entities and thus did not need to show that they were profitable.
B) they could borrow funds cheaper than other lenders because their bonds were perceived to be backed by the federal government.
C) they were allowed to institute higher loan standards than other banks and mortgage lenders.
D) they were exempt from federal regulations monitoring lending practices.

Question

Quizplus · Accepted Answer

Fannie Mae and Freddie Mac had a competitive advantage because their bonds were perceived to be backed by the federal government, which allowed them to borrow funds cheaper than other lenders. This allowed them to offer more attractive mortgages to borrowers.

Fannie Mae and Freddie Mac Held a Competitive Advantage Over