“Why are they buying loans like mine?? “
The loan originator sells loans like yours to Fannie and Freddie to get the loan off of his books. This gets the lender liquid again so that his money isn’t tied up in your paper, and then he can lend again.
This is the whole purpose of Fannie and Freddie, to provide a secondary market for real estate paper. The system worked well for the 60 years that loan originators kept to conforming standards.
That is the rub the goverment changed those conforming standards, but regardless the government has no business “buying” loans.
That is the rub the goverment changed those conforming standards, but regardless the government has no business “buying” loans.