Which organization is responsible for guaranteeing and funding home mortgages?

Fannie Mae, officially known as the Federal National Mortgage Association, plays a crucial role in the U.S. housing finance system by guaranteeing and funding home mortgages. It was created to enhance the flow of credit to the housing market and ensure that mortgage funds are available to a wider range of consumers. Fannie Mae accomplishes this by purchasing mortgages from lenders, thereby providing them with the capital to issue more loans. By guaranteeing these mortgages, it reduces the risk to lenders, which in turn helps maintain the availability of affordable housing.

Freddie Mac, or the Federal Home Loan Mortgage Corporation, also participates in this market but is a separate entity. Both organizations aim to stabilize the mortgage market and help lower borrowing costs, but Fannie Mae is often seen as the key player in this context when specifically discussing mortgage guarantees.

HUD, or the U.S. Department of Housing and Urban Development, primarily focuses on national housing policies and programs, rather than directly guaranteeing or funding mortgages. Dynamic Capital, as mentioned, is not a recognized agency with the same role in the mortgage sector as Fannie Mae or Freddie Mac.