Fannie Mae CEO reflects on housing 10 years after financial crisis

Source: Kai Ryssdal & Bridget Bodner, Marketplace

Timothy Mayopoulos: So here at Fannie Mae, we're in the mortgage business; but we don't make mortgages to consumers, to borrowers. What we do is we buy mortgages from folks who originate mortgages, whether it's a credit union or a bank or an independent mortgage bank, which gives them more money to go out and make more loans, and we take the mortgages that we buy and we put them into mortgage-backed securities, and we guarantee the purchasers of those securities that we’ll cover all the principal and interest payments in the event that the borrower doesn't make them.

 

Read Full Article: Fannie Mae CEO reflects on housing 10 years after financial crisis