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Fannie Mae

This article is about the Federal National Mortgage Association (FNMA) , commonly known as Fannie Mae. It focuses on what Fannie Mae actually is as well as some of its history.

Introduction To Fannie Mae

Fannie Mae is one of the many enterprises sponsored by the US government. It is chartered by the Congress with a one particular mission: to provide stability, liquidity and affordability to the people of the USA under the US housing & mortgage markets.

Fannie Mae is a company that operates in the secondary mortgage market in the United States of America. Instead of providing home loans to the consumers, Fannie Mae works with many of the mortgage bankers around.

Fannie Mae also works with some major mortgage partners in the market and even brokers. By doing so, this will ensure Fannie Mae that it has enough funds to lend to many home buyers; all at an affordable rate. Fannie Mae seeks funds for their investments by simply issuing debt securities in both local and international markets.

History Of Fannie Mae

Established as a federal agency some time in 1938, Fannie Mae was also chartered by the Congress in the year 1968 as a private company – basically owned by the shareholders. On September 6, 2008, the director of FHFA or Federal Housing Finance Agency, James Lockhart appointed the agency as the conservator of Fannie Mae.

In the same year, Fannie Mae has also entered an agreement with the Department of Treasury of the United States. This agreement was recently amended in the month of December the following year. Under the agreement, the US Treasury provided Fannie Mae with certain funds to be used as capital to bolster its net worth deficiencies to the end of 2012. This agreement is actually intended to strengthen the company’s continuous service to people especially through times of liquidation and stabilization of the housing and mortgage markets.

As a matter of fact, Fannie Mae has 3 lines of business credits – single family, capital markets and housing and community. All of these are provided to any of their customers and to any of their housing partners in the broad range category. Working together, the Fannie Mae business ventures strive for the chartered mission of the company to raise funds to make rental housing and home ownership more available affordable.