Changes

'''Fannie Mae'''  is the common name for the '''Federal National Mortgage Association''' ('''FNMA'''). <ref>[http://www.visualthesaurus.com/cm/wordroutes/1529/ Blaming Fannie and Freddie], Ben Zimmer, ''Visual Thesaurus'', September 16, 2008</ref> Fannie Mae is a company that deals with the secondary [[mortgage]] market. It is a [[New Deal]] agency founded by the U.S. government to provide increased liquidity for mortgages. Although remaining a government sponsored entity (GSE), the company began selling stock to the public in 1968. Fannie Mae has been described as middle class welfare.<ref>[http://www.bloomberg.com/news/2012-03-01/middle-class-welfare-state-invisible-by-design-commentary-by-ezra-klein.html Middle-Class Welfare State Is Invisible by Design,] Ezra Klein, ''Bloomberg'', 2012-03-01. </ref>

'''Fannie Mae'''  is the common name for the '''Federal National Mortgage Association''' ('''FNMA'''). <ref>[http://www.visualthesaurus.com/cm/wordroutes/1529/ Blaming Fannie and Freddie], Ben Zimmer, ''Visual Thesaurus'', September 16, 2008</ref> Fannie Mae is a company that deals with the secondary [[mortgage]] market. It is a [[New Deal]] agency founded by the U.S. government to provide increased liquidity for mortgages. Although remaining a government sponsored entity (GSE), the company began selling stock to the public in 1968. Fannie Mae has been described as middle class welfare.<ref>[http://www.bloomberg.com/news/2012-03-01/middle-class-welfare-state-invisible-by-design-commentary-by-ezra-klein.html Middle-Class Welfare State Is Invisible by Design,] Ezra Klein, ''Bloomberg'', 2012-03-01. </ref>

The company and its reputation were kept afloat by the US Government (along with [[Freddie Mac]]) after making billions in loans available to borrowers with demonstratively poor credit histories. Many individuals and pension funds globally who bought into the illusion of safety and security in a government backed entity, were wiped out when it faltered. It was placed in the [[conservator]]ship of another government sponsored enterprise, the Federal Housing Finance Agency (FHFA) for mismanaging its affairs in September 2008. It currently guarantees against default about $5 trillion in mortgages of American homeowners -- nearly half of all mortgages in the [[United States]].

The company and its reputation were kept alive by the US Government (along with [[Freddie Mac]]) after making billions in loans available to borrowers with demonstratively poor credit histories. Many individuals and pension funds globally, who bought into the illusion of safety and security in a government backed entity, were wiped out when it faltered. It was placed in the [[conservator]]ship of another government sponsored enterprise, the Federal Housing Finance Agency (FHFA) for mismanaging its affairs in September 2008. It currently guarantees against default about $5 trillion in mortgages of American homeowners -- nearly half of all mortgages in the [[United States]].

==Loan bundling==

==Loan bundling==

==Collapse and conservatorship 2008==

==Collapse and conservatorship 2008==

:''Main article: [[Financial crisis of 2008]]

:''Main article:'' [[Financial crisis of 2008]]

In 2007 and 2008, as the residential housing market experienced a sharp decline under the weight of widespread defaults by subprime borrowers, Fannie Mae suffered billions of dollars in losses. On September 6, 2008, Fannie Mae entered conservatorships overseen by the Federal Housing Finance Agency, and the [[U.S. Treasury Department]] began to make substantial purchases of Fannie Mae's senior preferred stock. As of December 31, 2011, Treasury had committed over $183 billion to support Fannie Mae and Freddie Mac.

In 2007 and 2008, as the residential housing market experienced a sharp decline under the weight of widespread defaults by subprime borrowers, Fannie Mae suffered billions of dollars in losses. On September 6, 2008, Fannie Mae entered conservatorships overseen by the Federal Housing Finance Agency, and the [[U.S. Treasury Department]] began to make substantial purchases of Fannie Mae's senior preferred stock. As of December 31, 2011, Treasury had committed over $183 billion to support Fannie Mae and Freddie Mac.