What Was the Original Stated Purpose of Fannie Mae and Freddie

question 86

Multiple Choice

What was the original stated purpose of Fannie Mae and Freddie Mac?

• A) to allow the government to extend loans directly to low-income and minority households
• B) to help provide liquidity in the secondary mortgage markets
• C) to operate as non-profit entities that would provide competition for for-profit mortgage companies
• D) to take on mortgages going into default in order to prevent them from going into foreclosure

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