That means that most "lenders" aren't really lending their own money, they're lending Fannie and Freddie's money.Really?...After the loan is made, Fannie or Freddie may buy the mortgage from the lender. Together, the two companies buy one of every five U.S. mortgages from the origination lenders,Ummmm...your article is showing it's age. Between late 2008 and 2012, the government (Fannie, Freddie, FHA, VA & USDA) backed more than 95% of mortgage loans, according to this article: http://www.americanprogress.org/issues/housing/report/2012/0...Exactly four years ago, during the early days of the financial crisis, the federal government took control of mortgage financiers Fannie Mae and Freddie Mac through a legal process called conservatorship. Since then, the two companies have required roughly $150 billion in taxpayer support to stay solvent, while the government has kept the housing market afloat by backing more than 95 percent of all home loans made in the United States.That means, at most, 5% of loans are backed by private lenders.AJ
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