Tag Archives: bailout

The Elimination of Fannie and Freddie Will Increase Mortgage Rates

While Fannie Mae and Freddie Mac are two separate companies, they both act as guarantors of mortgages and purchasers of “conforming” mortgages which eventually are sold to investors. Before they failed in 2008, they were both considered to be extremely safe companies which allowed them to borrow money at extremely low rates. However, once the