Fanny May and Freddy Mack

Extracted Attributes

• Type

  Government-sponsored enterprises (GSEs)

• Formal Names

  Fannie Mae and Freddie Mac

• Core Functions

  Buy mortgages from lenders, package them into mortgage-backed securities (MBS), and guarantee timely payment of principal and interest on MBS

• Current Status

  Under conservatorship of the Federal Housing Finance Agency (FHFA)

• Primary Purpose

  Provide liquidity, stability, and affordability to the U.S. mortgage market

• Identified Impact

  Culprits in inflating a housing bubble that locks people out of homeownership

• Market Share (2008)

  Owned or guaranteed approximately 50% of the U.S.'s $12 trillion mortgage market

• Headquarters (Freddie Mac)

  Tysons, Virginia, USA

Timeline

• The Federal Home Loan Mortgage Corporation (Freddie Mac) was created to expand the secondary market for mortgages in the US. In the same year, Fannie Mae was authorized to purchase conventional loans and went public. (Source: web_search_results)

  1970

• The Office of Federal Housing Enterprise Oversight, the regulator for Fannie Mae and Freddie Mac, issued the results of a 27-month-long investigation. (Source: web_search_results)

  2006-05-23

• The New York Times reported that U.S. government officials were considering a plan for the U.S. government to take over Fannie Mae and/or Freddie Mac should their financial situations worsen due to the U.S. housing crisis. (Source: web_search_results)

  2008-07-11

• Fannie Mae and Freddie Mac were placed into conservatorship of the Federal Housing Finance Agency (FHFA). Their chief executive officers and boards of directors were dismissed, and new senior preferred stock and common stock warrants were issued to the Treasury. (Source: web_search_results)

  2008-09-07

October 29

October 29 is the 302nd day of the year (303rd in leap years) in the Gregorian calendar; 63 days remain until the end of the year.

Web Search Results

• What are Fannie Mae and Freddie Mac?

  Fannie Mae and Freddie Mac are large companies that guarantee most of the mortgages made in the U.S. Together, they are also known as the government sponsored enterprises (GSEs). Historically, they were private companies operating with government permission and under government regulation. In late 2008, following the financial crisis, the U.S. government took over operations at both companies. Loan guarantees from Fannie Mae and Freddie Mac reduce risk for lenders who make loans and investors [...] What are Fannie Mae and Freddie Mac? [...] The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

• Freddie Mac - Wikipedia

  The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is an American publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, Virginia. The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with its sister organization, the Federal National Mortgage Association (Fannie Mae), Freddie Mac buys mortgages, pools them, and sells them as a mortgage-backed security (MBS) to private investors on the open market. [...] As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. This made both corporations highly susceptible to the subprime mortgage crisis of that year. Ultimately, in July 2008, the speculation was made reality, when the US government took action to prevent the collapse of both corporations. The US Treasury Department and the Federal Reserve took several steps to bolster confidence in the corporations, including extending credit limits, [...] On May 23, 2006, the Fannie Mae and Freddie Mac regulator, the Office of Federal Housing Enterprise Oversight, issued the results of a 27-month-long investigation.

• About Fannie Mae & Freddie Mac | FHFA

  Fannie Mae and Freddie Mac were created by Congress. They perform an important role in the nation’s housing finance system – to provide liquidity, stability and affordability to the mortgage market. They provide liquidity (ready access to funds on reasonable terms) to the thousands of banks, savings and loans, and mortgage companies that make loans to finance housing. [...] By packaging mortgages into MBS and guaranteeing the timely payment of principal and interest on the underlying mortgages, Fannie Mae and Freddie Mac attract to the secondary mortgage market investors who might not otherwise invest in mortgages, thereby expanding the pool of funds available for housing. That makes the secondary mortgage market more liquid and helps lower the interest rates paid by homeowners and other mortgage borrowers. [...] Fannie Mae and Freddie Mac buy mortgages from lenders and either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending. The Enterprises’ purchases help ensure that individuals and families that buy homes and investors that purchase apartment buildings and other multifamily dwellings have a continuous, stable supply of mortgage money.

• Fannie Mae - Wikipedia

  In 1970, the federal government authorized Fannie Mae to purchase conventional loans, i.e. those not insured by the FHA, VA, or FmHA, and created the Federal Home Loan Mortgage Corporation (FHLMC), colloquially known as Freddie Mac, to compete with Fannie Mae and thus facilitate a more robust and efficient secondary mortgage market. That same year FNMA went public on New York and Pacific Exchanges. [...] On July 11, 2008, The New York Times reported that U.S. government officials were considering a plan for the U.S. government to take over Fannie Mae and/or Freddie Mac should their financial situations worsen due to the U.S. housing crisis. Fannie Mae and smaller Freddie Mac owned or guaranteed a massive proportion of all home loans in the United States and so were especially hard hit by the slump.[citation needed] The government officials also stated that the government had also considered [...] 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 was "one of the most sweeping government interventions in private financial markets in decades". Lockhart also dismissed the firms' chief executive officers and boards of directors, and caused the issuance to the Treasury new senior preferred stock and common stock warrants amounting to 79.9% of each

• Freddie Mac | USAGov

  Freddie Mac =========== Freddie Mac's mission is to serve America's homebuyers, homeowners, and renters by equitably providing liquidity, stability, and affordability to the housing market. Freddie Mac is not a federal agency. It is a government-sponsored enterprise under the conservatorship of the Federal Housing Finance Agency (FHFA). Website ------- Freddie Mac Contact ------- Contact Freddie Mac Phone number ------------ 1-703-903-2000 Toll-free number ---------------- [...] 1-800-424-5401 1-888-995-HOPE (1-888-995-4673) Housing Counselors Main address ------------ 8200 Jones Branch Dr. McLean, VA 22102-3110 SHARE THIS PAGE: Image 8: FacebookImage 9: X Twitter USAGovImage 10: Email Have a question? ---------------- Ask a real person any government-related question for free. They will get you the answer or let you know where to find it. Image 11: talk icon Call USAGov Image 12: chat icon Chat with USAGov