Federal National Mortgage Association

Fannie Mae, During the early 20th century, homeownership was a cherished dream for most families. However, most homeowners found it tough to save for a down payment without a long-term fixed mortgage. During the great depression, it was found that around a quarter of the nation's homeowners lost their homes to foreclosure during the great depression. Even the banks failed to make the mortgage loans, so the United States government created Fannie Mae to provide liquidity, stability, and affordability in the mortgage market. Fannie Mae continued its mission to help make mortgage loans stable, efficient, and affordable in the United States.

We make our most possible efforts to become the most valuable partner of America by maintaining responsible risk management for sustainable housing finance and leading innovative mortgage solutions. In 1938, US Congress created Fannie Mae in Franklin D. Roosevelt's New Deal at the time of the great depression; also, there was a great requirement for a reliable and steady source of funding for housing, and affordable mortgage was not accessible for many families. In 1940, Fannie Mae helped its heroes buy homes by financing home purchases for millions of American soldiers returning from World War II. At this time, Fannie Mae allowed mortgage lenders to have the cash in hand to meet the nation's fast-growing economy and liquidity demand. During 1950, homeownership grew rapidly throughout the country and helped raise the middle class during the second half of the 20th century. Fannie Mae was reorganized from a government agency into a mixed-ownership corporation in 1954. In 1968, Fannie Mae (Housing and Urban Development Act) became a private shareholder-owned corporation chartered by the US Congress. Fannie Mae funded its stock and bond market operations after being removed from the federal budget.

During the 1980s world of opportunities, the development of mortgage-backed securities fetched capital from the global market to the US housing industry. Fannie Mae assured investors of guaranteed payment and made mortgage loans more secure, as it maintains today. Fannie Mae's housing prices plummeted, delinquencies rose during the financial crisis, and Government-sponsored enterprises lost billions of dollars on investment portfolios & mortgage-backed security guarantees. The Federal Government brought Fannie Mae and Freddie Mac under the preservationist Federal Housing Finance Agency to handle the associated problem. In 2012, Fannie Mae recovered and showed profitability. In 2014, it paid back all funds it received when it first went under the conservatorship and again put billions into the US Treasury.