Which organization is a government-owned enterprise in the mortgage market?

• A. Fannie Mae
• B. Ginnie Mae
• C. Freddie Mac
• D. Maggie Mae

Answer: (C)

In the mortgage market, the government’s influence comes mainly through entities designed to support the secondary market for home loans. Freddie Mac was created to buy mortgages from lenders and issue mortgage‑backed securities, which helps provide ongoing funds for new mortgages. It operates under a federal charter and benefits from strong government backing that gives investors confidence in the securities it guarantees. This combination is why Freddie Mac is described in many contexts as government-backed, even though it is not a fully government-owned agency.

Ginnie Mae, by contrast, is a government agency within HUD and is fully government-owned, while Fannie Mae is another government-sponsored enterprise with a similar role to Freddie Mac in supporting liquidity in the mortgage market. Maggie Mae isn’t a real organization. So the option that best aligns with the idea of a government‑backed, government-supported mortgage market entity is Freddie Mac, given how these programs are commonly described in exams.