FEDERAL
Sixth Semiannual Report to the Congress - Federal Housing ...
Sixth Semiannual Report to the Congress - Federal Housing ...
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Figure 10. Overview of the Enterprises and FHFA’s Role<br />
Primary<br />
Mortgage Market<br />
Market in which financial<br />
institutions provide<br />
mortgage loans to<br />
homebuyers<br />
LENDER<br />
Applies for<br />
Mortgage<br />
Provides<br />
Loan<br />
BORROWER<br />
Sells Loans that<br />
Meet Underwriting<br />
and Product<br />
Standards<br />
Secondary<br />
Mortgage Market<br />
Market in which<br />
existing mortgages and<br />
MBS are traded<br />
FANNIE MAE and<br />
FREDDIE MAC<br />
Buys<br />
Mortgages<br />
Conservator<br />
Credit<br />
Guarantee<br />
Business<br />
Portfolio<br />
Investment<br />
Business<br />
Ensures Financial<br />
Safety and<br />
Soundness<br />
Issues<br />
MBS<br />
Issues<br />
Debt<br />
INVESTORS<br />
Sells<br />
MBS & Debt<br />
Buys<br />
MBS<br />
Buys<br />
Debt<br />
• Individual<br />
• Institutional<br />
• Foreign<br />
Buys<br />
MBS & Debt<br />
WALL<br />
STREET<br />
Enterprises’ Market Share of the<br />
Secondary Market<br />
As Figure 11 (see page 40) illustrates, after losing<br />
market share to nonagency competitors during<br />
the housing boom from 2004 through 2007, the<br />
enterprises regained dominant positions in the<br />
residential housing finance market (with the federal<br />
government’s financial support) as the financial<br />
crisis continued and private-sector financing for the<br />
secondary market nearly disappeared. 14<br />
Figure 10. Overview of the Enterprises and FHFA’s Role<br />
Semiannual Report to the Congress • April 1, 2013–September 30, 2013 39