Currently, Fannie and Freddie are able to purchase loans for mortgages up to $359,000 this year and $400,000 next year.

Instead, it purchases loans that banks make on what is called the secondary market.

"Wall Street's role is largely one where we assess risk, we purchase loans."

It purchases loans from these lenders, called seller-sericers - in multifamily finance they are usually mortgage-banking firms - and packages them into marketable securities.

Fannie Mae raised money in the capital markets and purchased FHA-insured loans from banks.

On 30 March 2009 Nationwide agreed to purchase the branches, deposits and good loans of Dunfermline Building Society.

The bank also purchases residential whole loans and is an active participant in corporate loan syndications.

Freddie and Fannie became obligated to purchase sub prime loans in the interest of encouraging lending to sub prime borrowers.

Rate & term refinances are priced similar to purchase loans, with no interest rate increase.

HAC-1 purchased the mortgage and other loans in 1994 for $1.55 million from the Resolution Trust Corporation.