Mortgage Associations

Mortgage associations are organizations that support the housing finance system by buying, selling, or guaranteeing mortgages. They often package home loan loans into securities that can be sold to investors, providing lenders with funds to make more loans. Examples include Fannie Mae and Freddie Mac in the U.S. They help ensure a stable, affordable supply of mortgage credit, promote liquidity in the housing market, and manage the risk associated with home loans, making homeownership accessible for more people.