Fannie Mae and Freddie Mac Held a Competitive Advantage Over

question 654

Multiple Choice

Fannie Mae and Freddie Mac held a competitive advantage over other mortgage lenders primarily because

• A) they were established as non-profit entities and thus did not need to show that they were profitable.
• B) they could borrow funds cheaper than other lenders because their bonds were perceived to be backed by the federal government.
• C) they were allowed to institute higher loan standards than other banks and mortgage lenders.
• D) they were exempt from federal regulations monitoring lending practices.

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