Final answer:
It is true that Fannie Mae and Freddie Mac generally do not purchase mortgages on properties that are illegal uses, adhering to laws and avoiding practices like historical redlining.
Step-by-step explanation:
Generally speaking, it is true that Fannie Mae and Freddie Mac will not purchase a mortgage on a property that is an illegal use. Any properties that do not conform to relevant laws or zoning requirements would typically be considered ineligible for purchase by these entities. The practice of redlining, which refers to the discriminatory mortgage and insurance policies of the past, is an example of how government-backed entities like the FHA would evaluate loans based on the location and demographic composition of a neighborhood, thereby denying services to minority populations and contributing to segregation. This historical context is pertinent when assessing the standards that entities like Fannie Mae and Freddie Mac might have in avoiding illegal or discriminatory lending practices today.