According to the Federal Reserve, there were about 54.7 million loans in the U.S. residential mortgage market in 2008, for a total mortgage debt of $10 trillion. Most of these loans were made from 2004 – 2007 when Americans were borrowing and refinancing at breakneck speeds. Most of these loans were sold to residential mortgage-backed trusts. These trusts were formed by both government-sponsored entities (“GSEs”), primarily Fannie Mae and Freddie Mac, and by securities companies. The trusts formed by securities companies are often called “private label” trusts.
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