The tandem plan involves which of the following entities?

The tandem plan refers to a specific arrangement in the mortgage industry where two entities work together to facilitate the financing of loans, particularly regarding financing for lower-income borrowers. In this case, the correct answer indicates that Fannie Mae and Ginnie Mae are the two entities involved in this partnership.

Fannie Mae, or the Federal National Mortgage Association, primarily buys and securitizes conventional loans. It plays a crucial role in ensuring liquidity in the mortgage market, allowing lenders to continue providing loans to consumers. Ginnie Mae, or the Government National Mortgage Association, on the other hand, specializes in guarantying mortgage-backed securities that are backed by government-insured or guaranteed loans such as those from FHA and VA.

The tandem plan allows for the synthesis of the conventional and government-backed loan programs, helping to expand access to affordable housing finance. This cooperative relationship also aids in the diversification of funding streams for lenders and makes it possible for a more extensive range of mortgage products to be available on the market.

While the other options include significant players in the mortgage finance industry, they do not denote the specific partnership characterized by the tandem plan. Therefore, the combination of Fannie Mae and Ginnie Mae captures the essence of the tandem plan effectively.