Final answer:
Fannie Mae and Freddie Mac have a direct impact on the individual consumer wishing to obtain a mortgage loan through their role in the mortgage market, providing liquidity and establishing guidelines.
Step-by-step explanation:
Fannie Mae and Freddie Mac have a direct impact on the individual consumer wishing to obtain a mortgage loan because they play a major role in the mortgage market in the United States. Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgage loans from lenders, thereby providing liquidity to the mortgage market.
When a consumer applies for a mortgage loan, the lender can sell the loan to Fannie Mae or Freddie Mac, which allows the lender to free up capital to make more loans. This, in turn, helps keep interest rates lower and makes mortgages more affordable for consumers.
Additionally, Fannie Mae and Freddie Mac establish guidelines and standards for mortgage loans, including credit score requirements, loan-to-value ratios, and documentation requirements. These guidelines affect the terms and conditions under which consumers can obtain a mortgage loan.