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Fannie mae and you may Freddie Mac are authorities-backed businesses (GSE) one to pick mortgages, purchase and sell mortgage-backed securities (MBS), and you will ensure almost half of the brand new mortgage loans from the U.S. Using federal money as well as their individual finance, these says and you will urban centers given borrowers money who defray the new price of the newest down payment. The brand new writers from a study entitled “Performed the city Reinvestment Work Lead to High-risk Lending?” found that “on the six residence nearby an excellent CRA exam, credit by the financial institutions undergoing a great CRA examination try 5 per cent high on average”.

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