What do Fannie Mae and Freddie Mac have in common?
A) They are both government-sponsored mortgage lenders.
B) They are both investment banks.
C) They are both pension funds.
D) Both firms went out of business in the 2008 financial crisis.
E) Both firms issue bonds on behalf of the government.

Question

Quizplus · Accepted Answer

Fannie Mae and Freddie Mac are both government-sponsored enterprises (GSEs) that were created by Congress to provide liquidity, stability, and affordability to the U.S. housing market. They do so by buying and securitizing mortgages, which enables lenders to make more loans available to homebuyers. Although they are publicly traded companies, they are under government conservatorship and their activities are closely regulated by the Federal Housing Finance Agency.

What Do Fannie Mae and Freddie Mac Have in Common