Fannie Mae-No Politics (FNMA)

[rjanderson383]

FACT OF THE DAY:

GSE'S ARE NEEDED IN OUR ECONOMY.


Backing the mortgage industry with private or public institutions is essential. I posted a while back that when SALLIE MAE( they backed student loans) became private...in 7 years, you would have earned close to 75 times your money and received quarterly dividends.

Banks have to sell these mortgages because they need to get more money to make money. Banks wouldn't make much if they gave loans and that was it. They need to sell off the loans in order to make more loans... and sell off those loans... to make more loans.

This is how it works.