The Olden Days
In the "olden" days, when someone wanted a home loan they walked downtown to the neighborhood bank or savings & loan. If the bank had extra funds laying around and considered you a good credit risk, they would lend you the money from their own funds.
It doesn’t generally work like that anymore. Most of the money for home loans comes from three major institutions:
Fannie Mae (FNMA - Federal National Mortgage Association)
Freddie Mac (FHLMC – Federal Home Loan Mortgage Corporation)
Ginnie Mae (GNMA – Government National Mortgage Association).
