Which federally chartered private institutions buy and sell residential mortgages?

Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) that play a crucial role in the U.S. housing finance system by buying and selling residential mortgages. These institutions help to provide liquidity, stability, and affordability to the mortgage market, allowing lenders to issue more loans by purchasing existing mortgage loans. This process enables banks to replenish their funds and continue to lend to borrowers.

Fannie Mae mainly deals with loans that conform to certain guidelines, known as conforming loans, while Freddie Mac also operates similarly but primarily purchases mortgages from smaller regional and local lenders. Their activities help maintain a steady flow of funds for home mortgages, which is essential for the affordability of homes across the nation.

In contrast, the other options listed consist of commercial bank institutions that primarily engage in lending and other banking services but do not have the same role in buying and selling residential mortgages on a national scale like Fannie Mae and Freddie Mac do.