Fannie Mae Freddie Mac
About the Lecture
The lecture Fannie Mae Freddie Mac by Edu Pristine is from the course ARCHIV Case Study: PRM. It contains the following chapters:
- Fannie Mae and Freddie Mac
- Timeline of events
- Lessons learned
Author of lecture Fannie Mae Freddie Mac
Edu Pristine
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Excerpts from the accompanying material
... Fannie Mae was established in 1938 to make mortgages more available to low‐income families, as a part of Franklin Roosevelt's New Deal it was added to the Federal Home Mortgage Association. In 1968, the US government converted Fannie Mae into a private shareholder‐owned corporation in order to remove its accounts from the annual balance sheet of the federal budget as a consequence of ...
... according to their risk profiles. The riskier the loan, the more Fannie Mae charged to handle it, within a certain pools based on their credit quality, increasing the fees in relation to poor credit mortgage pools. In 2002, President George W. Bush signed the Single‐Family Affordable Housing Tax Credit Act according to which "Renewing the Dream" program would give nearly $2.4 billion in tax credits over the next five ...
... number of borrowers, usually with poor credit ratings that were unable to pay their mortgages - particularly with adjustable rate mortgages (ARM), caused a steep rise in home foreclosures. House prices fell and it led to mounting losses for Fannie Mae and Freddie Mac. In August 2008, in spite of the US government efforts, shares of Fannie Mae and Freddie Mac plummeted more than 90% from ...
