Case Study Fannie Mae
An Insight into Fannie Mae
For many families in the United States who are looking to buy a new home, there are always many things to consider. Money is one of the largest factors, and it can be very hard for lower, moderate, or middle class families to afford the cost and mortgages of the house they want. That is when Fannie Mae will step in to help them out.
Fannie Mae has been around since the New Deal was passed in 1938. They are set up to expand the secondary mortgage market in the United States by securing mortgages with mortgage-backed securities. This will basically allow the lenders to reinvest their assets and money into more lending. In turn, it later increases the number of lenders in the mortgage market and reduces the reliance on local banks.
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They have many leaders and managers within the agency, and they hold high positions such as president and vice president of all major areas of the company. Depending on the area, the president or vice president will take over on decision making and problem solving for the agency.
As with many government agencies, outside influences are bound to arise. One major influence Fannie Mae had to deal with was the housing crisis in 2007-2008. They took a huge blow to their assets because fewer people were buying houses; therefore they were not getting their funding either. And with more people not being able to pay those mortgages anyway, it was hard for them to stay
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