- Look at the Fannie mae Mortgage Look device or perhaps the Freddie Mac Loan Look-Right up unit on their respective other sites.
- Enter your very own information, such as your label, target additionally the last four digits of one’s Societal Protection amount to verify your term.
- Stick to the instructions to find out if your own financial is actually owned or supported by Fannie mae or Freddie Mac.
In case the home loan is actually owned otherwise backed by Federal national mortgage association otherwise Freddie Mac computer, your s, instance loan modifications or refinancing alternatives, so it is important to know and that organization keeps your own mortgage.
While you are Fannie mae and you may Freddie Mac provides similar business habits and you can work with a comparable industry, there are numerous trick differences between the two entities:
1. Record and you may Goal
Federal national mortgage association and you may Freddie Mac enjoys equivalent histories and you can objectives, since the each other had been depending by the Congress as the GSEs to provide liquidity and you fast cash loan Peoria can stability on U.S. housing market. Yet not, there are a few variations in their histories and you can missions.
Federal national mortgage association are created in 1938 included in Chairman Franklin D. Roosevelt’s New Price to greatly help manage economical homes choices for People in america. The company are to begin with an integral part of the government however, was later on privatized inside the 1968.
Freddie Mac, in addition, are established in 1970 to include race to Fannie mae and improve liquidity about financial field. Freddie Mac’s objective is similar to Fannie Mae’s in this it buys mortgage loans of other lenders and you may securitizes them towards the MBS, but inaddition it focuses primarily on help reduced financial institutions and you can thrifts one elizabeth information since larger lenders.
Another type of difference between Federal national mortgage association and you can Freddie Mac is the ownership construction. Fannie mae is privatized inside the 1968 which is belonging to shareholders, if you find yourself Freddie Mac has been belonging to government entities.
dos. Market share
Fannie mae and you will Freddie Mac computer have typically had comparable business shares in the You.S. casing financing program. However, there have been certain variations in their market offers over time.
Regarding many years before brand new overall economy away from 2008, Fannie mae and you may Freddie Mac kept a prominent position on the U.S. financial sector. Yet not, pursuing the overall economy, the government took over one another companies and you can followed change on their functions to minimize its exposure to help you taxpayers. This means that, the share of the market possess due to the fact rejected.
Federal national mortgage association and Freddie Mac computer still enjoy a serious role when you look at the the fresh You.S. housing industry, however their business have reduced. This is certainly due to some extent towards development of low-bank lenders or other private markets agencies having joined the latest home loan industry nowadays.
When you’re Fannie mae and you can Freddie Mac has actually equivalent business offers, there are some variations in the kinds of finance they purchase and you will securitize.
3. Mortgage Brands
Federal national mortgage association and you can Freddie Mac computer both get and you may securitize many types out of mortgage loans, however, there are a few variations in the sorts of fund it work with.
Fannie Mae’s main focus is on antique, compliant money. These are fund that fulfill Fannie Mae’s underwriting and you may qualifications criteria and you can adhere to mortgage restrictions lay because of the FHFA. Fannie Mae’s financing limits will vary by geographical place and generally are modified a year to mirror changes in construction costs. Federal national mortgage association and orders finance that are insured by FHA otherwise protected by Agency out-of Pros Factors (VA).
Freddie Mac along with purchases old-fashioned, conforming financing, however it have a more powerful run multifamily funds. Multifamily loans is actually funds that will be used to finance functions with four or even more tools, like apartment houses. Freddie Mac is the top source of money to own multifamily attributes on You.S. and also certain financing products customized with the need from multifamily individuals. Freddie Mac in addition to sales funds that will be covered of the FHA otherwise protected because of the Virtual assistant.