- Visit the Federal national mortgage association Financing Look equipment or perhaps the Freddie Mac computer Loan Search-Upwards equipment on their particular websites.
- Enter into your personal pointers, such as your identity, target in addition to history five digits of your own Societal Shelter amount to verify the label.
- Follow the instructions to see if your own mortgage was owned otherwise backed by Fannie mae or Freddie Mac computer.
In case the mortgage is owned or supported by Fannie mae otherwise Freddie Mac computer, you s, like loan variations or refinancing solutions, so it’s important to know and that entity retains the mortgage.
If you’re Fannie mae and you can Freddie Mac keeps similar company designs and you may are employed in an identical globe, there are a few secret differences between the 2 entities:
step 1. Records and you may Purpose
Federal national mortgage association and you can Freddie Mac has comparable histories and missions, once the each other had been founded by Congress because the GSEs to add liquidity and you will stability to your You.S. housing marketplace. not, you will find several differences in the histories and you may objectives.
Fannie mae was established in 1938 within Chairman Franklin D. Roosevelt’s The fresh Deal to help do less expensive houses choices for People in america. The company are originally a part of the government however, is actually after privatized for the 1968.
Freddie Mac computer, likewise, try created in 1970 to add battle to Federal national mortgage association and you can raise liquidity throughout the financial industry. Freddie Mac’s purpose is much like Fannie Mae’s in that it purchases mortgages out of additional loan providers and securitizes all of them towards MBS, but it also is targeted on support less finance companies and you will thrifts that age info while the big lenders.
A new difference in Federal national mortgage association and you will Freddie Mac is the ownership construction. Fannie mae try privatized inside 1968 in fact it is owned by shareholders, while you are Freddie Mac computer is still owned by the government.
2. Market share
Federal national mortgage association and you may Freddie Mac computer keeps historically got comparable markets shares about You.S. property finance system. However, there have been some differences in here is their site its field shares over the years.
On years leading up to brand new overall economy out-of 2008, Fannie mae and you will Freddie Mac computer kept a dominating updates regarding You.S. financial field. not, pursuing the economic crisis, government entities took more one another organizations and then followed transform on the procedures to reduce the risk so you can taxpayers. Consequently, the business enjoys while the denied.
Fannie mae and Freddie Mac computer however gamble a critical role for the brand new U.S. housing market, but their share of the market enjoys diminished. This will be owed simply into growth of low-bank loan providers or any other private market organizations having entered brand new mortgage industry lately.
When you find yourself Federal national mortgage association and you may Freddie Mac features comparable markets offers, there are numerous variations in the types of financing they purchase and you will securitize.
step 3. Home loan Sizes
Fannie mae and Freddie Mac each other pick and you can securitize various sorts of mortgages, however, there are numerous differences in the types of finance it focus on.
Fannie Mae’s emphasis is found on old-fashioned, compliant funds. Speaking of loans one to satisfy Fannie Mae’s underwriting and you may qualification criteria and you will comply with financing constraints put by the FHFA. Fannie Mae’s loan restrictions are very different because of the geographical place and therefore are modified a year to help you reflect alterations in casing prices. Fannie mae and sales funds which might be insured by the FHA otherwise protected by Institution away from Pros Issues (VA).
Freddie Mac also sales conventional, conforming funds, but it has a healthier work with multifamily loans. Multifamily money is actually loans which might be accustomed financing characteristics having five or higher systems, such as for example flat structures. Freddie Mac ‘s the top source of financial support to own multifamily characteristics on U.S. and also specific loan points tailored on requires out of multifamily consumers. Freddie Mac computer and additionally instructions loans which might be covered by FHA or secured from the Virtual assistant.