Why Does Guidance Sell Its Contracts To Freddie Mac?

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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.