U.S. Residential Secondary Mortgage Market: Mechanism And Regulation Reform

Fannie Mae,Freddie Mac and Ginnie Mae played an important role in creating,expanding and reforming the so-called U.S residential secondary mortgage market. Originally created against imperfections of the market, now they continually exist and effectively support the secondary mortgage market by linking the capital market with the residential mortgage market, thus benefiting homebuyers. Granted with special charters, Fannie Mae and Freddie Mac deliver Off-budget subsidies from the federal government to the market. This article the mechanism and regulation reform of the residential secondary mortgage market.