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Author: Rex Madden

Most people don't realize how important the mortgage industry is to the U.S. As the industry was deregulated and only banks or Savings and Loans could provide mortgages, preivate companies and Entrepreneurs entered the service industry. It was a huge shot in the arm for the construction industry and hence employment in the U.S.

Mortgage lending is a major category of business In USA.Mortgages are simply the commercial papers and assigned freely to the other holders.

In USA the Federal Housing Administration administers the programme which is known as Ginnie Mae,Fannie Mae and Freddie Mac(also known as GSEs or Government sponsured entities) to foster mortgage lending and to encourage home ownership and construction.Thi programme work by buying a large number of Mortgage from banks and issuing mortgage backed bonds to investors known as MBS or Mortgage Backed Securities.


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