Fannie Mae (Federal National Mortgage Association) is a government-sponsored enterprise (GSE) created to support the mortgage market by purchasing home loans from lenders. By buying these loans, Fannie Mae helps lenders free up money to issue more mortgages. Fannie Mae does not directly lend to consumers—instead, it operates in the secondary mortgage market and helps increase liquidity and stability in housing finance.

Fannie Mae primarily deals with conventional loans and sets underwriting standards that influence what lenders require for borrowers. A common exam takeaway is: Fannie Mae buys qualifying mortgages from banks, bundles them into mortgage-backed securities (MBS), and sells them to investors, helping keep mortgage rates more stable and available.

Freddie Mac (Federal Home Loan Mortgage Corporation) is a GSE similar to Fannie Mae, created to support the mortgage market by purchasing mortgages from lenders and selling them as mortgage-backed securities. Like Fannie Mae, Freddie Mac does not issue loans directly to homebuyers; it works in the secondary mortgage market.

Freddie Mac improves lender liquidity and helps stabilize mortgage availability and pricing. On the exam, a key point is that Freddie Mac and Fannie Mae both buy conventional mortgages, but Freddie Mac historically had more association with savings institutions, while Fannie Mae had more association with banks (the practical difference today is minimal for exam purposes).

Ginnie Mae (Government National Mortgage Association) is a government agency (part of HUD) that guarantees mortgage-backed securities (MBS) backed by federally insured or guaranteed loans. Unlike Fannie Mae and Freddie Mac (which are GSEs), Ginnie Mae is a true government agency and its guarantees are backed by the full faith and credit of the U.S. government.

Ginnie Mae is commonly associated with FHA loans, VA loans, and other government-backed lending programs. The most important exam concept is: Ginnie Mae does not buy loans like Fannie Mae/Freddie Mac—it guarantees MBS, helping investors feel safe buying securities tied to FHA/VA loans, which increases funding availability for those programs.

The FHA is a federal agency under HUD that insures mortgages made by approved lenders. FHA loans are designed to expand access to homeownership, especially for borrowers who may have smaller down payments or less-than-perfect credit. The FHA does not lend money directly; it provides mortgage insurance that protects the lender if the borrower defaults.

For exam purposes, FHA is most often connected with low down payment loans, mortgage insurance premiums (MIP), and programs that support first-time and moderate-income buyers. Because FHA-insured loans have federal insurance, lenders are more willing to approve them, which increases borrower access to financing.

The VA is a federal agency that guarantees home loans for eligible veterans, active-duty service members, and some surviving spouses. VA loans are provided through approved lenders, but the VA guaranty protects the lender from certain losses if the borrower defaults. This makes VA financing one of the most favorable loan programs for qualified borrowers.

A major exam takeaway is that VA loans often allow 0% down payment, may have limited closing costs, and do not require monthly mortgage insurance like FHA loans (though they may include a funding fee). VA loans are a major category of government-backed loan financing.

HUD is the federal department responsible for national policies and programs that address housing needs, fair housing, and community development. HUD oversees and supports programs related to affordable housing and housing assistance, and it supervises agencies like the FHA and Ginnie Mae.

For the CA real estate exam, HUD is tied to enforcement of federal housing policy, the Fair Housing Act, and oversight of government housing finance programs. HUD also administers programs that support public housing and housing assistance in communities.

The USDA provides loan programs through its Rural Development division to support homeownership in eligible rural and some suburban areas. USDA loans are typically offered with favorable terms and may allow 0% down payment for qualified buyers, depending on the program type.

On the exam, USDA loans are important because they represent another type of government-backed financing that supports access to homeownership, especially in less densely populated areas. Like other programs, USDA loans are issued through lenders but supported by a federal guarantee or direct lending structure depending on the program.

The CFPB is a federal agency created to protect consumers in the financial marketplace, including mortgages and real estate lending. The CFPB helps enforce federal rules about disclosures, fair lending practices, and consumer protections.

For exam purposes, the CFPB is commonly connected with the regulation and oversight of mortgage lending disclosures such as TRID (TILA-RESPA Integrated Disclosure). It exists to reduce abusive lending practices and make borrowing terms clearer to consumers.

The FDIC is a federal agency that insures deposits at banks and savings institutions (up to legal limits) and helps maintain public confidence in the banking system. While the FDIC is not a mortgage agency, it matters because it regulates and insures many institutions that originate mortgage loans.

For the real estate exam, the FDIC is mostly a “bank stability” agency: protecting depositors and promoting financial system trust. A stable banking system supports stable mortgage availability for consumers.

The OCC is a federal agency that regulates and supervises national banks and federal savings associations. It ensures these institutions operate safely and follow laws and regulations. Since banks originate a large portion of real estate loans, the OCC indirectly impacts mortgage lending practices.

On the exam, remember that the OCC oversees many lenders and helps ensure mortgage lending is conducted within appropriate regulatory standards, particularly for federally chartered banks.

The Federal Reserve is the central bank of the United States and plays a major role in interest rates, money supply, and financial stability. While it does not directly manage mortgages, it influences mortgage rates through monetary policy and broader economic conditions.

For exam purposes, the Federal Reserve impacts the cost of borrowing. When interest rates rise, mortgage rates generally rise, reducing affordability; when rates fall, mortgage rates often decline, increasing affordability and housing demand.

CalHFA is a California state agency that provides financing programs designed to help low- and moderate-income buyers purchase homes. CalHFA programs often include down payment assistance or special loan terms, typically through approved lenders.

For the CA exam, CalHFA is relevant because it is a major state-level homebuyer support organization. It’s a good example of how states can offer programs that complement federal loan options like FHA and VA.