Fannie Mae

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Related to Fannie Mae: Freddie Mac

Federal National Mortgage Association

Federal National Mortgage Association (FMNA), commonly known as Fannie Mae, government-sponsored enterprise that is the largest purchaser and guarantor of home mortgages in the country. Headquartered in Washington, D.C., Fannie Mae buys mortgages from such lenders as banks and savings and loans, packages them, and resells them on the open market, thus creating fluidity and lessening lenders' risk. Fannie Mae's creation of this secondary mortgage market enables low- and middle-income individuals and families to obtain mortgages and purchase homes. The corporation was founded (1938) by the federal government to buy and sell mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration (now the Veterans Affairs Dept.). Rechartered in 1954, it was privatized in 1968. That year also marked the establishment of a federally owned sister corporation, the Government National Mortgage Association (GNMA), or Ginnie Mae, which is administered by the Dept. of Housing and Urban Development and helps to finance public housing. Fannie Mae's corporate credibility was damaged by revelations (2004) that it manipulated its earnings from 1998 to 2004, in part to maximize bonus payments to its corporate executives. Problems in the housing and mortgage industry that began in 2007 led in 2008 to increasing losses at—and concern about a possible bankruptcy of—Fannie Mae and especially Freddie Mac (the Federal Home Loan Mortgage Corporation), and resulted in the two mortgage guarantors being placed under the conservatorship of Federal Housing Finance Agency.
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Federal National Mortgage Association (Fannie Mae)

The quasi-private corporation chartered by the US government that functions as a secondary mortgage market for private residences.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
References in periodicals archive ?
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans.
Additionally, Fannie Mae was responsible for nine REO assets totalling $56.8 million from its non-securitized portfolio.
"By selling three properties Fannie Mae owns in the District of Columbia, the company will be able to dispose of assets in a seller's market," Fannie Mae officials said.
* La Ventana Apartments, Dallas, TX -- This 87-unit multifamily property received $2,500,000 funded under the Fannie Mae DUS Small Loan product line.
The deal that prompted the investigation was a $412 million payment from Fannie Mae to Bank of America in August 2011 to transfer the servicing rights to more than 300,000 of these loans over to specialty companies it calls "high touch servicers."
"Fannie Mae s financial performance indicates that as much as we would like the excesses of the last decade to be behind us, the clean-up period is going to extend for at least the next several years," he said.
"We're excited VRM now provides the direct connection into the Fannie Mae system and VRM system users may electronically submit appraisals without incurring additional cost, integrating with other systems or requiring extra effort."
Two years later, in 1970, the US government created Freddie Mac, an exact duplicate of Fannie Mae. The reason behind a second institution was that high economic growth of the 1960s had led to rising incomes and the resulting widespread homeownership made just one government sponsored mortgage institution, namely Fannie Mae, unappealingly, if not scarily, large.
And now that the government has shown that it will indeed step in to support Fannie Mae and Freddie Mac, the supposed public benefit also needs to be examined.
In a suit filed against Fannie on December 18 to recover $115 million in compensation, the Office of Federal Housing Enterprise Oversight (OFHEO) said former Fannie Mae CEO Franklin D.
Eligible borrowers can obtain an EEM backed by Fannie Mae with only a three percent contribution, which can be funded by the borrower and through other sources such as grants or gifts.
OFHEO had set its sights on Fannie Mae after sibling Freddie Mac made headlines in 2003 for engaging in creative accounting practices.