Fannie Mae has answered a challenge for market share from its smaller competitor Freddie Mac by locking up the right to buy most of the home loans made by three big lenders.

Fleet Mortgage Group, a unit of Fleet Financial Group, Resource Bancshares Mortgage Group, and North American Mortgage Co., a unit of Dime Bancorp, said this week that they had agreed to sell large chunks of their production to Fannie. In return, the secondary market titan will let lenders use technology other than its own in the lending process.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.