Two government-sponsored enterprises and several private companies buy mortgages for purposes of pooling them and selling them to investors.

Question

Quizplus · Accepted Answer

This statement is true. Fannie Mae and Freddie Mac are the two government-sponsored enterprises that buy mortgages, and private companies such as investment banks and hedge funds also participate in this market. They pool these mortgages together and sell them as mortgage-backed securities to investors.

Two Government-Sponsored Enterprises and Several Private Companies Buy Mortgages for Purposes