Archive for the ‘Mortgage’ Category
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How the Mortgage System Works (2)
Fannie Mae and Freddy Mac package the loans they buy into mortgage-backed securities that are then sold to investors. The money from the sale of these securities enables them to continue buying mortgages from lenders. However since the federal government has taken over both of these entities, it appears this will guarantee stability and a continuing supply of mortgage funds. Read the rest of this entry » -
How the Mortgage System Works?
The mortgage industry works much like the rest of the economy. It has wholesale and retail sectors that work together to create a plentiful supply of money for home buyers to use in purchasing a house. The system is so efficient that it has helped more than 60 percent of American households to own their own homes. Read the rest of this entry »
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