Based on the data in the St. Louis Federal Reserve FRED database;
- The number of mortgages held by
- Which of the three companies currently holds the largest dollar amount of mortgages?
- Which of the three companies currently holds the smallest dollar amount of mortgages?
- How do the current volumes of mortgages held by Fannie Mae and Freddie Mac compare to the volumes before 2010?
a. Ginnie Mae
b. Fannie Mae
c. Freddie Mac
Concept Introduction:
The GNMA, FNMA, and HLMC are the government-sponsored public-traded organizations.
Mortgage markets are divided into primary and secondary markets. The primary market consists of loans by lending institutions like banks, loan associations, commercial banks, or credit unions who obtain the funds from individuals, business, or government deposits or mortgages sales in the secondary markets. Ginnie Mae, Fannie Mae, and Freddie Mac operate in the secondary mortgage markets. They purchase the loans originated by lending institutions. They then either hold the mortgages in their portfolio or pool the mortgages and pool the securities.
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