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Does Fannie Mae directly or indirectly get money that is printed from the federal reserve to buy mortgages, or have they ever? If so, when has this happened? How much money? What is the process by which it gets to them?

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  • $\begingroup$ It does not work like that at all. The three main mechanisms the GSEs use to make money is (a) guaranteeing mortgages in exchange for a fee; (b) borrowing money themselves and buying mortgages from banks; (c) buying mortgages from banks and repackaging them through a process of securitization for resale to investors with the benefit of the guarantee. During the financial crisis, the guarantees were called and the US Treasury had to put money into the GSEs to stop them going bust, with the GSEs making payments back since then from their profits $\endgroup$ – Henry Oct 26 '17 at 22:16
  • $\begingroup$ Please narrow this down to one clear question. As of right now it is too broad. $\endgroup$ – dismalscience Oct 27 '17 at 17:14

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