Treasury streamlines mortgage modification

WASHINGTON, Nov. 11 (UPI) -- The Bush administration Tuesday announced a plan for modifying mortgages to give U.S. homeowners a chance to avoid foreclosure.
Waxman sets Fannie, Freddie hearings

Waxman sets Fannie, Freddie hearings

WASHINGTON, Oct. 21 (UPI) -- U.S. congressional Democrats say they have scheduled hearings into failures at mortgage giants Fannie Mae and Freddie Mac but not until after the election.

Feds to let elderly woman return home

AKRON, Ohio, Oct. 4 (UPI) -- U.S. housing officials say they are forgiving the mortgage of a 90-year-old Ohio woman who shot herself as she was about to be evicted.

FBI investigates four Wall Street players

WASHINGTON, Sept. 24 (UPI) -- The FBI has opened investigations into possible fraud at four entities at the center of the recent turmoil in the U.S. financial markets, officials said.

Paulson outlines plan for financial fix

WASHINGTON, Sept. 19 (UPI) -- The federal government must take "further, decisive action" to fix the cause of the U.S. financial system's crisis, the U.S. Treasury chief said Friday.
Congress wants say in bailout decisions

Congress wants say in bailout decisions

WASHINGTON, Sept. 18 (UPI) -- Congressional Democrats and Republicans alike are expressing concern at being left out of decisions concerning the U.S. financial crisis.

Mortgage applications surge in week

WASHINGTON, Sept. 17 (UPI) -- The volume of applications for U.S. mortgages increased dramatically last week, rising by a seasonally adjusted 33.4 percent, an industry group said.

Fed keeps key lending rates unchanged

WASHINGTON, Sept. 16 (UPI) -- The Federal Open Market Committee kept the U.S. central bank's key funds rate unchanged in spite of pressure to add liquidity to struggling financial markets.

China may cut its dollar holdings

BEIJING, Sept. 12 (UPI) -- A leading investment bank in China said the country may trim the portion of its currency reserves tied to U.S. dollars.

U.S. helping Lehman without funds offered

WASHINGTON, Sept. 12 (UPI) -- U.S. regulators are pitching in to carve out a scenario for Lehman Brothers Holdings that would have the least damage to financial markets, sources said.
Obama, McCain have ties to Fannie, Freddie

Obama, McCain have ties to Fannie, Freddie

WASHINGTON, Sept. 10 (UPI) -- The major-party U.S. presidential candidates have ties to troubled Freddie Mac and Fannie Mae, a review of records indicates.

Charities may suffer on regulator's move

WASHINGTON, Sept. 10 (UPI) -- The fate of charitable donations made by faltering U.S. mortgage giants Freddie Mac and Fannie Mae is under review, a government official said.

Federal bailout increases USA's risk

WASHINGTON, Sept. 9 (UPI) -- Taking over two mortgage giants has lowered the United States' credit rating, investment analysts said Tuesday.

Federal bailout decided in late August

WASHINGTON, Sept. 9 (UPI) -- Hope the Bush administration could avoid intervening with the two largest U.S. mortgage firms ended Aug. 26, officials said.
Banks warily watch Freddie, Fannie bailout

Banks warily watch Freddie, Fannie bailout

WASHINGTON, Sept. 9 (UPI) -- Banks that invested heavily in two Washington mortgage giants are faced with steep losses in the wake of the government's bailout, financial analysts said.
Page 5 of 8

The Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.

On September 7, 2008, James Lockhart, director of the Federal Housing Finance Agency (FHFA), announced that Fannie Mae and Freddie Mac were being placed into conservatorship of the FHFA. The action is "one of the most sweeping government interventions in private financial markets in decades". As of 2008, Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) owned or guaranteed about half of the U.S.'s $12 trillion mortgage market.

Fannie Mae was established in 1938 as a mechanism to make mortgages more available to low-income families. It was added to the Federal Home Mortgage association, a government agency in the wake of the Great Depression in 1938, as part of Franklin Delano Roosevelt's New Deal in order to facilitate liquidity within the mortgage market. In 1968, the government converted Fannie Mae into a private shareholder-owned corporation in order to remove its activity from the annual balance sheet of the federal budget. Consequently, Fannie Mae ceased to be the guarantor of government-issued mortgages, and that responsibility was transferred to the new Government National Mortgage Association (Ginnie Mae). In 1970, the government created the Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, to compete with Fannie Mae and, thus, facilitate a more robust and efficient secondary mortgage market. Since the creation of the GSEs, there has been debate surrounding their role in the mortgage market, their relationship with the government, and whether or not they are indeed necessary. This debate gained relevance due to the collapse of the U.S. housing market and subprime mortgage crisis that began in 2007. Despite this debate, Fannie Mae, as well as Ginnie Mae and later Freddie Mac, has played an integral part in the development of what was the most successful mortgage market in the world which has allowed U.S. citizens to benefit from one of the highest home ownership percentages in the world

This article is licensed under the GNU Free Documentation License.
It uses material from the Wikipedia article "Federal National Mortgage Association."
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