Fannie Mae and Freddie Mac can buy or sell any type of ________, but the mortgages that are packaged into securities are restricted to ________ and those that satisfy their underwriting guidelines.

Question

Quizplus · Accepted Answer

Fannie Mae and Freddie Mac are government-sponsored entities that deal with residential mortgages. They can buy or sell any type of mortgage, but the ones that are packaged into securities are typically restricted to residential mortgages that meet their underwriting guidelines. Therefore, option B (residential mortgage; government loans) is the best choice.

Fannie Mae and Freddie Mac Can Buy or Sell Any