Both Fannie Mae and Freddie Mac were authorized to buy and sell conventional mortgages as well as those insured by the FHA or VA, which were now guaranteed by a new Government National Mortgage Association, better known as Ginnie Mae. To attract new investors to the secondary mortgage market,...
Two years later, Fannie Mae was authorized to buy conventional mortgages in addition to FHA and VA loans.17The agency began issuingmortgage-backed securities(MBS) in the 1980s to offer more liquidity in the mortgage investment market.7The money to buy mortgage-related assets came from issuing d...
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