Introduction to Mortgages and Fannie Mae

Skibidi, let us dive into the world of mortgages, where a goon can snag a house with a simple contract. A mortgage is a credit agreement backed by real estate, usually a cozy crib. The borrower, lowkey a sigma, asks a bank for cash to buy the pad and puts the property on the line. If payments slip, the bank swoops in like a toilet flush. Now, Fannie Mae, born in 1938, became the big player in this game, buying up those mortgages and turning them into fancy securities, keeping banks liquid. But during the 2008 edge, Fannie Mae went wild, buying risky subprime loans, leading to a dank financial mess.