FannieMae, FreddieMac and GinnieMae have a HUGE impact on the mortgage markets. They help keep home loans affordable and available no matter what the economy is doing. They all have similar underwriting guidelines for the types of loans they purchase, and the main goal of all 3 is to keep housing affordable. Fannie and Freddie are publicly traded on the stock exchanges, while Ginnie is 100% government owned and operated, and NOT traded on the stock exchange.
These 3 investors of Mortgage Backed Securities have been and continue to be very helpful for many families in the United States. They have also streamlined the underwriting process with their AU (Automated Underwriting) engines available online. Many lenders can submit loan parameters, credit scores, and specific underwriting/loan processing information, and upload it to the online AU engine and get a credit decision within minutes... sometimes in just seconds. There are usually loan conditions that must be met, conditions, verifications, etc. that must be uploaded and verified manually (by human eyes), but the process has been significantly quicker.
There have been a few attempts by some of the larger banks/mortgage companies to create their own Automated Underwriting engines, but none have been quite as successful as Fannie, Freddie, and Ginnie.
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