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Fannie Mae (Federal National Mortgage Association) (FNMA)

Self Description

March 2004: "Early History: The FHA Administrator chartered Fannie Mae on February 10, 1938. The impetus for creation of Fannie Mae was twofold: the national commitment to housing and the inability or unwillingness of private lenders to ensure a reliable supply of mortgage credit throughout the country. The primary purpose of Fannie Mae was to purchase, hold, or sell FHA-insured mortgage loans that had been originated by private lenders. After World War II, Fannie Mae's authority was expanded to include VA-guaranteed home mortgages."

Third-Party Descriptions

July 2013: "Opponents, including the Securities Industry and Financial Markets Association, the American Bankers Association, the National Association of Realtors and some big investors have mounted a concerted opposition campaign on multiple levels, including flying lobbyists to California city halls and pressuring Fannie Mae, Freddie Mac and the Federal Housing Administration to use their control of the mortgage industry to ban the practice."

March 2012: "Borrowers who have a mortgage held by Fannie Mae (FNMA, Fortune 500) or Freddie Mac (FRE) -- roughly half the market -- are out of luck. Loans insured by the Federal Housing Administration are also ineligible."

February 2012: "While the $26 billion figure is the one being cited in the negotiations, federal officials said they hope the eventual value for homeowners reaches up to $39 billion. However, mortgages owned by the government’s housing finance agencies, Fannie Mae and Freddie Mac, will not be covered under the deal, excluding about half the nation’s mortgages."

January 2012: "The report came just as the Obama administration had been escalating its efforts to push Fannie Mae and Freddie Mac to ease conditions for homeowners, including those who owe more on their mortgages than their homes are worth."

September 2011: "A bruising legal fight pitting the country’s most powerful banks against the full force of the United States government began Friday, as federal regulators filed suits against 17 financial institutions that sold the mortgage giants Fannie Mae and Freddie Mac nearly $200 billion in mortgage-backed securities that later soured."

June 2011: "The federal agency overseeing Fannie Mae and Freddie Mac, the taxpayer-owned mortgage finance giants, failed to refer to criminal investigators and other authorities almost 100 complaints about possible foreclosure abuse and mortgage fraud at the companies over a recent two-year period, according to a report issued late Tuesday by the inspector general of the Federal Housing Finance Agency."

February 2011: "It is also a more audacious call for the federal government to cut back its broadly popular, long-running campaign to help Americans own homes. The three ideas that the report outlines for replacing Fannie and Freddie all would raise the cost of mortgage loans and push homeownership beyond the reach of some families."

December 2010: "In the world according to the G.O.P. commissioners, it’s all the fault of government do-gooders, who used various levers — especially Fannie Mae and Freddie Mac, the government-sponsored loan-guarantee agencies — to promote loans to low-income borrowers. Wall Street — I mean, the private sector — erred only to the extent that it got suckered into going along with this government-created bubble. It’s hard to overstate how wrongheaded all of this is."

May 2010: 'The June 1 changes are part of a new effort by mortgage giant Fannie Mae to cut down on slipshod underwriting by lenders and fraud by borrowers. Fannie's "loan quality initiative" will require lenders not only to pull two credit reports for each mortgage transaction but to perform additional verifications of borrower occupancy plans for the property, Social Security numbers and Individual Taxpayer Identification Numbers.'

July 2009: "2. Foreclosure moratoria skewed sales data Foreclosure filings had nearly ground to a halt in the first three months of the year, as most large loan servicers put a temporary halt on foreclosures in anticipation of the government’s announcement of the Making Home Affordable program. Fannie Mae (FNM2) and Freddie Mac (FRE3) also suspended foreclosures through the beginning of March. That temporary halt in filings skewed sales data for May, says Celia Chen, senior director of housing economics at Moody’s Because fewer properties were foreclosed on, fewer were sold by banks or at foreclosure auctions. Foreclosure sales tend to suppress sale prices."

June 2009: "In practice, however, if a public option is available, it will probably enjoy taxpayer subsidies. Indeed, even if the initial legislation rejected them, such subsidies would be hard to avoid in the long run. Fannie Mae and Freddie Mac, the mortgage giants created by federal law, were once private companies. Yet many investors believed — correctly, as it turned out — that the federal government would stand behind Fannie’s and Freddie’s debts, and this perception gave these companies access to cheap credit. Similarly, a public health insurance plan would enjoy the presumption of a government backstop."

July 2008: "Over the course of this 18-month financial crisis, we have lurched from land mine to land mine. Last week’s was all about Fannie Mae and Freddie Mac, the giant government-sponsored enterprises set up to provide affordable housing across the nation. By issuing debt, these shareholder-owned companies guarantee or own more than $5 trillion in home mortgages. Got that? $5 trillion."

July 2008: "Under the measure, Congress would lose some of its authority to oversee the companies, Fannie Mae and Freddie Mac, including the right to determine how much capital they must keep as a cushion against losses. That role would shift to the new regulator, which would be called the Federal Housing Finance Agency; the director of the agency would be appointed by the president and confirmed by the Senate."

July 2008: "Last weekend, Bernanke offered Fed lending to the housing finance companies Fannie Mae and Freddie Mac and did not resist in gaining a new role for the Fed in setting those firms' capital requirements. In March, the Fed engineered the buyout of Bear Stearns and offered emergency lending to all investment banks."

July 2008: "The Securities and Exchange Commission, under pressure to respond to the tumult in the financial industry, announced emergency measures on Tuesday to curb certain kinds of short-selling that aims at Fannie Mae and Freddie Mac, as well as Wall Street banks."

July 2008: "Democratic Congressional leaders on Tuesday pushed back their timetable for approving emergency housing legislation after Republicans voiced growing skepticism and, in some cases, angry opposition to the Bush administration’s proposal to rescue Fannie Mae and Freddie Mac, the government-chartered mortgage finance companies."

July 2008: "The S.E.C. has been engaged in an internal debate over what kind of investigation to mount with respect to rumors. The turbulence in the markets last week, with rumors adding to concerns about fundamentals affecting commercial banks, investment banks and the government-sponsored enterprises Fannie Mae and Freddie Mac, sped the decision to begin the examination and make it public."

August 2007: 'The proposals would expand the program of insuring home loans under the Federal Housing Administration, part of the Department of Housing and Urban Development; create a national fund for “affordable housing”; expand the ability of Fannie Mae and Freddie Mac, the government-sponsored finance companies, to buy renegotiated subprime mortgages; and give bankruptcy judges more power to order easier terms for borrowers.'

February 2006: The controller's office under Spencer was hit hard by Rudman's report. The 230-employee division was the main compiler of financial data at the company, key to the accuracy of financial reports both internal and to investors. Yet Rudman found it was woefully understaffed and had a paucity of qualified staff. It also had inadequate systems to do its work. Both of these assertions were central to allegations made by a former comptroller's office employee, Roger L. Barnes, who first raised questions about Fannie's accounting policies in 2003 and is considered a whistle blower by the Office of Federal Housing Enterprise Oversight, the government agency that oversees Fannie Mae and Freddie Mac. Barnes quit in 2003 and threatened to sue Fannie for racial discrimination; he and Fannie Mae reached a settlement.

September 2004: Though Fannie Mae said it was cooperating fully with a federal examination of its accounting, its regulator says the mortgage finance company was so reluctant that the agency had to subpoena documents and witnesses and ask the Justice Department for help enforcing subpoenas.


RoleNameTypeLast Updated
Founder/Co-Founder of Independent Valuation Protection Institute Organization Sep 17, 2009
Director/Trustee/Overseer (past or present) Office of Federal Housing Enterprise Oversight (OFHEO) Organization Sep 27, 2004
Cooperation (past or present) The Coalition for Homeownership Organization Jun 17, 2011
Organization Executive (past or present) Shaun Dakin Person Jan 22, 2008
Organization Executive (past or present) J. Timothy Howard Person Jun 15, 2006
Director/Trustee/Overseer (past or present) Ann McLaughlin Korologos Person Sep 27, 2004
Organization Head/Leader (past or present) Franklin D. Raines Esq. Person Sep 27, 2004
Research/Analysis Subject Joshua "Josh" Rosner Person Jun 17, 2011
Advised by (past or present) John Taylor Person Apr 20, 2008
Organization Executive (past or present) Robert B. Zoellick Esq., MPP Person May 7, 2006

Articles and Resources

55 Articles and Resources. Go to:  [Next 20]   [End]

Date Resource Read it at:
Jul 29, 2013 A City Invokes Seizure Laws to Save Homes

QUOTE: Scarcely touched by the nation’s housing recovery and tired of waiting for federal help, Richmond is about to become the first city in the nation to try eminent domain as a way to stop foreclosures. The results will be closely watched by both Wall Street banks, which have vigorously opposed the use of eminent domain to buy mortgages and reduce homeowner debt, and a host of cities across the country that are considering emulating Richmond.

New York Times
Mar 13, 2012 Rage grows over mortgage deal

QUOTE: As more details emerge about the massive $26 billion foreclosure settlement between the five biggest mortgage lenders and the states' attorneys general, a growing number of borrowers are realizing that the deal will do little, if anything, to help them out.

CNN (Cable News Network)
Feb 08, 2012 States Negotiate $26 Billion Deal for Homeowners

QUOTE: After months of painstaking talks, government authorities and five of the nation’s biggest banks have agreed to a $26 billion settlement that could provide relief to nearly two million current and former American homeowners harmed by the bursting of the housing bubble, state and federal officials said. It is part of a broad national settlement aimed at halting the housing market’s downward slide and holding the banks accountable for foreclosure abuses.

New York Times
Jan 30, 2012 Treasury Investigates Freddie Mac Investment

QUOTE: The Treasury Department is investigating a report that Freddie Mac, the mortgage giant, bet against homeowners’ ability to refinance their loans even as it was making it more difficult for them to do so...

New York Times
Sep 02, 2011 Federal Regulators Sue Big Banks Over Mortgages

QUOTE: A bruising legal fight pitting the country’s most powerful banks against the full force of the United States government began Friday, as federal regulators filed suits against 17 financial institutions that sold the mortgage giants Fannie Mae and Freddie Mac nearly $200 billion in mortgage-backed securities that later soured.

New York Times
Jun 21, 2011 Oversight Group Did Not Refer Housing Complaints

QUOTE: The federal agency overseeing Fannie Mae and Freddie Mac, the taxpayer-owned mortgage finance giants, failed to refer to criminal investigators and other authorities almost 100 complaints about possible foreclosure abuse and mortgage fraud at the companies over a recent two-year period, according to a report issued late Tuesday by the inspector general of the Federal Housing Finance Agency.

New York Times
Apr 06, 2011 Federal examiners protested help for politically connected bank, e-mails show

QUOTE: A decision... to help a politically connected bank in Boston left federal bank examiners there angry enough that some called it a “travesty of justice..." The chairman of OneUnited Bank, a friend of Rep. Maxine Waters (D-Calif.), had rendered it insolvent through lavish spending and bad investments... after Waters arranged a key Treasury Department meeting for the bank, it had won a bailout loan and a unique exemption from the FDIC’s accounting rules.

Washington Post
Mar 31, 2011 Report Criticizes High Pay at Fannie and Freddie

QUOTE: When the government stepped in to support some of the nation’s biggest financial institutions in 2008, compensation became an issue of concern to taxpayers... The executives at Fannie and Freddie received far more than their counterparts at other federal housing agencies.

New York Times
Feb 11, 2011 Administration Calls for Cutting Aid to Home Buyers

QUOTE: The three ideas that the report outlines for replacing Fannie and Freddie all would raise the cost of mortgage loans and push homeownership beyond the reach of some families.

New York Times
Dec 16, 2010 Wall Street Whitewash

QUOTE: The bipartisan Financial Crisis Inquiry Commission was established by law to “examine the causes, domestic and global, of the current financial and economic crisis in the United States.” The hope was that it would be a modern version of the Pecora investigation of the 1930s, which documented Wall Street abuses and helped pave the way for financial reform. Instead, however, the commission has broken down along partisan lines, unable to agree on even the most basic points.

New York Times
May 15, 2010 Applying for mortgage? Starting June 1, you could face another credit screening

QUOTE: If you're thinking about applying for a home mortgage, here's some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing. The last-minute credit report will be designed to find out whether you have obtained -- or even shopped for -- new debt between the date of your loan application and the closing.

Washington Post
Sep 16, 2009 When Work Doesn't Pay For The Middle Class: Middle-class folks are finding that a raise or second paycheck doesn't always mean living better. Time to work less?

QUOTE: Work isn't the only middle-class virtue that is getting punished. The system penalizes savings, too--not just through taxes, but also through programs that reward debtors, the profligate and college families that show up at the financial aid office with empty pockets. Yet another series of tax and benefit rules penalizes marriage.

Sep 07, 2009 Mortgage Market Bound by Major U.S. Role: Classes of Borrowers Cannot Find Loans as Publicly Backed Debt Mounts (Consequences of the Crisis Part 2)

QUOTE: the government's newly dominant role... has far-reaching consequences for prospective home buyers and taxpayers. The government has the power to decide who is qualified for a loan and who is not. As a result, many borrowers among both poor and rich are frozen out of the market.

Washington Post
Aug 18, 2009 In Appraisal Shift, Lenders Gain Power and Critics (Back to Business)

QUOTE: The Home Valuation Code of Conduct is setting off a bitter battle. Mortgage brokers, lenders, real estate agents, regulators and appraisers are all arguing over whether an effort to fix one problem has created many new ones.

New York Times
Aug 04, 2009 Dueling Public Interests In Policing Rescued Firms: SEC Actions Could Weigh on U.S. Stakes

QUOTE: the quandary [the SEC filing suit against Regions Financial] shows the difficulty facing the nation's top Wall Street cop at a time when the economic crisis has left the U.S. government as the part-owner or controller of an unprecedented array of financial companies. Protecting investors on the one hand could mean harming taxpayer-owners on the other.

Washington Post
Jul 29, 2009 3 Things the Latest Housing Data Don't Say

QUOTE: 1. The numbers need to be adjusted....2. Foreclosure moratoria skewed sales data....3. Unemployment will pace the recovery

Smart Money
Jun 27, 2009 Economic View: The Pitfalls of the Public Option

QUOTE: IN the debate over health care reform, one issue looms large: whether to have a public option. Should all Americans have the opportunity to sign up for government-run health insurance?....Even if one accepts the president’s broader goals of wider access to health care and cost containment, his economic logic regarding the public option is hard to follow. Consumer choice and honest competition are indeed the foundation of a successful market system, but they are usually achieved without a public provider.

New York Times
Dec 21, 2008 Even Bernard Madoff Doesn't Deserve This

QUOTE: when it comes to large-scale frauds involving public companies and their millions of shares, the guidelines' grounding in mathematics sometimes results in sentences that are, quite literally, off the charts. They fall within the realm of prison terms usually reserved for Mafia bosses, major international drug lords, cop killers, child molesters and terrorists.

Washington Post
Nov 15, 2008 In Transition, Tangle of Ties to Lobbying

QUOTE: President-elect Barack Obama has imposed stricter conflict-of-interest restrictions on his White House transition team than any president before him. But a list of transition team members that his office made public on Friday includes a complicated tangle of ties to private influence-seekers.

New York Times
Nov 13, 2008 For a Washington Job, Be Prepared to Tell All

QUOTE: A seven-page questionnaire being sent by the office of President-elect Barack Obama to those seeking cabinet and other high-ranking posts may be the most extensive — some say invasive — application ever.

New York Times

55 Articles and Resources. Go to:  [Next 20]   [End]