Why Does Guidance Sell Its Contracts To Freddie Mac?
1:59
In this video:
- Freddie Mac is not a lender nor is it a bank.
- Freddie Mac was created by Congress in 1970 to provide liquidity in the mortgage industry.
- Freddie Mac buys contracts issued by banks and sells it to investors in the secondary market, but the terms of the co-ownership agreement remains the same.
- Guidance uses its own fund to facilitate initial financing to purchase the property alongside the homebuyers.
- Shariah permits to sell what is owned.
