The two government sponsored enterprises (GSEs) that sell bonds and use the proceeds to purchase mortgages are
A)Fannie Mae and Freddie Mac
B)Ginnie Mae and Housing and Urban Development (HUD)
C)Ginnie Mae and Daisy Mae
D)Freddie Mac and Housing and Urban Development (HUD)

Question

Quizplus · Accepted Answer

Fannie Mae and Freddie Mac are the two government sponsored enterprises that sell bonds and use the proceeds to purchase mortgages. Ginnie Mae is another GSE that guarantees mortgage-backed securities, but it does not sell bonds to purchase mortgages. Housing and Urban Development (HUD) is a federal agency that provides a variety of housing-related services, but it is not a GSE involved in selling bonds to purchase mortgages. Daisy Mae is not a real organization.

The Two Government Sponsored Enterprises (GSEs) That Sell Bonds and Use