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free market system auction

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free market system auction

An auction process used by the Federal National Mortgage Association (Fannie Mae) to accept bids from approved lenders as to the amount,price,and terms of existing mortgages those lenders desire to sell to Fannie Mae.Once Fannie Mae decides how much it can spend to buy mortgages, it notifies the winning bidders, who have a certain amount of time within which to deliver the mortgages. The servicing agent continues to service the loans and receives a fee from Fannie Mae.



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