Fannie Mae
The Federal National Mortgage Association, or as it’s more commonly known as, Fannie Mae, has a history that dates back to the Great Depression in the 1930s. Established by the U.S. Congress in 1938, the enterprise was born out of a need for more financial security in the housing market after the Great Depression resulted in a surge of foreclosures. The National Housing Act of 1934, which established the Federal Housing Administration (“FHA”) and the Federal Savings and Loan Insurance Corporation, was amended in 1938 to not only create Fannie Mae but also Fannie’s counterpart, the Federal Home Loan Mortgage Corporation, better known as Freddie Mac.
Fast forward to 2008 and the two enterprises were forced into the spotlight again during the Great Recession. Between an increasing number of people getting mortgages with little to no credit, a fast-growing supply of vacant homes on the market from borrowers going into default and many other factors that collided together, America’s economy was in trouble and Fannie Mae and Freddie Mac were at the center of it. In the aftermath of this, the United States government stepped in and put the enterprises under conservatorship, which is how they still operate today, acting now as government-sponsored enterprises.
In today’s market, Fannie Mae buys and guarantees mortgages, working with lenders in the secondary market, meaning they don’t actually originate or service the mortgages. Overseen by the Federal Housing Finance Agency, which was created in 2008 to supervise the two enterprises, Fannie Mae now operates to ensure the availability of affordable mortgage loans and maintain the 30-year, fixed-rate mortgage.
While talks heightened under the Trump Administration to remove both GSEs from conservatorship, the Biden Administration has shown no interest in continuing down that road. Instead, the current acting director, Sandra Thompson, is focused on achieving greater affordability in the housing market, expanding access to credit in underserved communities, fair lending and safety and soundness in the housing space.
Latest Posts
86% of consumers say it’s a bad time to buy a house: Fannie Mae
Jun 07, 2024Concerns over affordability have led to low sentiment among consumers about the home purchase market, according to new Fannie Mae data.
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Fannie Mae’s Doug Duncan on Fed ‘overcommunication,’ ‘dormant’ lenders and second mortgages
Jun 06, 2024 -
Analysis: Loan repurchase patterns at Fannie, Freddie are divergent
Jun 05, 2024 -
GSEs update Flex Modification program, target 20% P&I reduction
May 29, 2024 -
With elections ahead, housing policy analysts discuss the end of GSEs’ conservatorship
May 22, 2024 -
Freddie Mac’s controversial gambit into home equity: Is more liquidity a bad thing?
May 15, 2024 -
Trade groups express concern to FHFA over historic credit data
May 13, 2024 -
Fannie Mae adds web-based income calculator for mortgage originators
May 08, 2024 -
HUD and FHA announce new appraisal bias protections
May 01, 2024 -
Agencies aim to standardize ‘first-generation homebuyer mortgage’ definition
May 01, 2024 -
Freddie Mac expands use of AOLs in selling guide update
May 01, 2024 -
Fannie Mae profits grow to $4.3B in Q1 2024
Apr 30, 2024