– Fannie Mae purchases home loans from commercial/retail banks to sell as mortgage-backed securities. Freddie Mac is the Federal Home Loan Mortgage Corporation, founded in 1970, and mainly purchases home loans from smaller “thrift” banks to sell as mortgage-backed securities.
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Fannie Mae – Wikipedia – Conforming loans. Fannie Mae and Freddie Mac have a limit on the maximum sized loan they will guarantee. This is known as the "conforming loan limit". The conforming loan limit for Fannie Mae, along with Freddie Mac, is set by Office of Federal Housing Enterprise Oversight (OFHEO), the regulator of both GSEs.