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
Fannie Mae adds web-based income calculator for mortgage originators
May 08, 2024The new option is designed to better serve borrowers with nontraditional sources of income, including self-employed workers.
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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 -
FHFA releases fair lending final rule
Apr 30, 2024 -
CHLA president addresses various consumer protection measures
Apr 25, 2024 -
FHFA annual report highlights GSE actions on affordable housing
Apr 18, 2024 -
Loan buybacks haven’t disappeared, but they are trending down
Apr 18, 2024 -
GSEs will not count buyer agent commissions in cap on seller concessions
Apr 15, 2024 -
State financial regulators and FHFA enter mortgage information sharing agreement
Apr 10, 2024 -
CFPB considers ban on charging buyers for lender’s title policy
Apr 10, 2024