In this week’s podcast John and Bryan sit down with VanDyk Mortgage’s Chief Secondary Officer, John Barnes, and discuss where mortgage money to finance a home comes from – from the consumer’s perspective.

Since the Great Depression, banks have stopped lending and the government has stepped in to provide a vehicle for mortgage lending. John explains how warehouse banks make money available to lenders to provide financing to homeowners.

The men go on to discuss the three government sponsored entities that lenders can sell loans to – Fannie Mae, Freddie Mac, and Ginnie Mae – and how they form pools of loan groups that are sold on Wall Street in the secondary market.

The goal is that these three GSEs act as the central spoke for liquidity on the mortgage market. This way, lenders are not forced to go to Wall  ...