The investors make their profit from the interest the home buyers pay on their mortgages. Both are committed to encouraging homeownership. They often work with non-profits to educate consumers about the scary process of applying for a mortgage, and to encourage those with good credit and not necessarily high income to buy a home. Neighborhoods with homeowners have more voters. The neighborhood is safer.
People take care of their lawn and house.
Consumers enjoy lower mortgage interest rates, readily available home mortgage credit and reduced origination costs. Additionally, because these two make mortgage money available in all parts of the country, interest rates are steady and stable everywhere, small town or city. And the services provided by these two large corporations don't cost taxpayers anything. In fact these private companies, financed by stockholders, pay billions of dollars in taxes, according to Daue. Now here's some history of these organizations.