As explained above, Fannie Mae and Freddie Mac provide liquidity to aid the nation’s home loan market by buying loans from lenders and packing them into mortgage-backed securities. Then they sell these securities to investors, guaranteeing the payments that are monthly the securities. This technique enables banking institutions to supply affordable products to homebuyers including the 30-year, fixed-rate home loan: Fannie Mae and Freddie Mac purchase these loans from loan providers, permitting lenders.. Read More