1.10- What is a Mortgage Investor?


Mortgage Investors are the parties that purchase mortgages from lenders. Most of the time, these are government entities or government-sponsored enterprises that purchase the home loans so the lenders can continue selling new home loans. This keeps the mortgage market running by providing funds and guidelines for lenders to use when selling mortgages. This allows the constant flow of money to lenders and allowing more people an opportunity to get a mortgage.

Mortgage Investors are the end-users of mortgages. Foreign governments, pension funds, insurance companies, banks, GESs, Hedge funds are all part of Mortgage Investors.

Of all the mortgage investors, The GSEs "Gvernment Sponsored Enterprise" have the largest portfolios. Freddie Mac, Fannie Mae, Ginnie Mae are examples of GSEs that are considered to be the biggest Mortgage Investors in the United States Mortgage Market.