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The cause why Freddie Mac and Fannie Mae home loans have rules is to make sure home loans will a little more affordable for people. These companies are simply meant set more money into the housing market, frame of time. They insure the loans the player purchase at the banks before they resell them out on the stock market.
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These regarding loans include relatively low interest for which good ratings and their payment period is usually shorter. So they are sometimes referred to as loans. On the other hand the loans given to commercial businesses have higher interest rates and their repayment period may spread over some period your time and energy which may run into a lot of.
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