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Index/Topics/Fannie Mae and Freddie Mac's Role in Mortgage Market

Fannie Mae and Freddie Mac's Role in Mortgage Market

Fannie Mae and Freddie Mac enable long-term fixed-rate mortgages by buying loans, packaging them into mortgage-backed securities, and guaranteeing payments, which creates liquidity and standardization in the secondary mortgage market.

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Jan 17, 2026

How do Fannie Mae and Freddie Mac enable long-term fixed-rate mortgages in the U.S.?

Fannie Mae and Freddie Mac enable long-term fixed-rate mortgages primarily by buying loans from lenders, packaging those loans into mortgage-backed securities (MBS), and guaranteeing timely principal ...