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Freddie Mac
A government-sponsored enterprise (GSE) in the United States that aims to expand the secondary mortgage market by buying mortgage loans and mortgage-related securities.
Fannie Mae
A government-sponsored enterprise (GSE) aimed at expanding the secondary mortgage market by securitizing mortgages.
Mortgage-Backed Securities
Securities issued for the financing of large pools of mortgages. The promised returns to the security holders are derived from the mortgage interest payments.
Capital Requirement
The minimum amount of financial resources that a firm needs to conduct its business activities, often regulated in industries like banking.
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