Quote:
Originally Posted by TheSquealer
So... you also have no clue how Fannie Mae makes money. They borrow and they lend and they package sell their loans to Wall Street as securities just like any other loan. Wall Street ends up owning the loan.. not the tax payers.
Dummy.
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Yes
Freddie was set up to broker mortgages, not 'make risky investment loans'.
" Federal Home Loan Mortgage Corporation "
Freddie guarantees that the investors will receive an agreed-upon payment each month. The U.S. Treasury backs the guarantee.
This is a direct government subsidy and taking away from 'investment banking'.
This is not a home mortgage, it is investment banking.
And it is a form of Corporate Socialism. government providing what the private sector does.... investment banking.
Once a loan is backed by Freddie or Fanny, the government is always on the hook for them. With full faith of the taxpayer. That is how they sell them, government guaranteed.
I think i found something even you can understand...
https://www.thebalance.com/what-is-freddie-mac-3305985
You got egg on your face ! Dummy !