The Federal National Mortgage Association is one of the biggest mortgage holders in the Unites States, many current mortgages are owned by them. Commonly known as Fannie Mae, it is a privately held corporation owned by stockholders. Because of the current mortgage crisis affecting property owners across the nation the Federal National Mortgage was recently put under government control.
Fannie Mae was enacted by federal charter in’38 during the Great Depression. Its cause was to increase the credit availability for low income Americans by securitizing mortgages. This was done to ensure that there was a stable supply of money for the companies responsible for issuing mortgages to home buyers.
In’68 the government changed the once public organization into a privately held corporation under the control of shareholders. As a government sponsored enterprise it has been the object of criticism for its links to the government and near federal status.
In September of 2008 the collapse in the US mortgage market forced the FHFA to place Fannie Mae under federal control. Once again the institution was under the control of the the government.
It was estimated that at that time Fannie Mae and the similar organization Freddie Mac backed about half of the US $12 trillion dollar property loan market. It had an operating loss of a little more than $5 billion in 2007 and a total exceeding $880 billion in assets to close 2007.
With all of the organizations assets closely intertwined in just about every aspect of the United States property market the mortgage crisis forced congress to step in with public support.
Once the government made their control of Fannie Mae official by bailing them out they also began enacting lending reforms. As the main backer the federal government now has a substantial voice in the how Fannie Mae treats its mortgage holders, and is using that influence to help home owners.
If Fannie Mae holds your mortgage and you are at risk of falling behind your monthly payments you should be a candidate for relief.
The writer has significant experience as a mortgage associate and knows how home owners can get foreclosure help, often by taking advantage of federal mortgage assistance programs
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