No they aren’t actual people. Fannie Mae is also known as the Federal National Mortgage Association and Freddie Mac is just another name for the Federal Home Loan Mortgage Association.

Fannie Mae and Freddie Mac are government-sponsored enterprises. This shareholder-owned corporation was created by Congress in 1938 to provide stability, liquidity and affordability in the mortgage market as part of President Roosevelt’s New Deal. They are now our nation’s largest purchaser of home mortgages.

Basically, Fannie and Freddie purchase Mortgages from lenders, so that the lenders have more money to lend out.  They then securitize the loans and sell them as mortgage backed securities to investors.

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