Fannie Mae, officially known as the Federal National Mortgage Association (FNMA), is a government-sponsored enterprise (GSE) established in 1938 to enhance the availability and affordability of housing in the United States. Its primary function is to provide liquidity, stability, and affordability to the mortgage market by purchasing mortgages from approved lenders and securitizing them into mortgage-backed securities (MBS).
Over the decades, Fannie Mae has played a pivotal role in the U.S. housing finance system. In 1968, it transitioned into a publicly traded company, and by 2024, it held assets exceeding $4.3 trillion, making it the largest company in the U.S. and the fifth largest globally by assets.
Since the 2008 financial crisis, Fannie Mae has operated under the conservatorship of the Federal Housing Finance Agency (FHFA). Recent developments include the appointment of William Pulte as the new FHFA director, with a Senate confirmation vote of 56 to 43. Pulte’s agenda involves exploring the privatization of Fannie Mae and its counterpart, Freddie Mac, aiming to reduce taxpayer risk and foster competition.
However, some experts caution that such a move could lead to increased mortgage costs, potentially affecting affordability for many homebuyers.
Additionally, Fannie Mae has recently come under scrutiny due to its management of condominium property listings. A “secret mortgage blacklist” has been identified, affecting homeowners’ ability to sell properties. This list includes condo associations deemed to have inadequate insurance or requiring critical repairs, leading to increased insurance costs and complicating sales transactions.
For more information or assistance related to mortgage financing, Fannie Mae offers resources and guidance through its official website.