Changes

==Franklin Raines era==

==Franklin Raines era==

Franklin Raines served as Fannie Mae's Vice Chairman from 1991 to 1996 when President [[Bill Clinton]]<ref>Bill Clinton appointed [[Rahm Emanuel]], later [[Obama]] Chief of Staff, to the Board of Directors of Fannie Mae's sister agency, Freddie Mac. Emanuel had no experience or qualifications for the position. Freddie Mac likewise was taken into conservatorship for mismanagement.</ref> recruited him to serve in the [[White House]] as Director of the [[Office of Management and Budget]] for two years. In 1998 Raines returned to Fannie Mae as Chief Executive Officer (CEO).

Franklin Raines served as Fannie Mae's Vice Chairman from 1991 to 1996 when President [[Bill Clinton]]<ref>Bill Clinton appointed [[Rahm Emanuel]], later [[Obama]] Chief of Staff, to the Board of Directors of Fannie Mae's sister agency, Freddie Mac. Emanuel had no experience or qualifications for the position. Freddie Mac likewise was taken into conservatorship for mismanagement.</ref> recruited him to serve in the [[White House]] as Director of the [[Office of Management and Budget]] for two years. In 1998 Raines returned to Fannie Mae as Chief Executive Officer (CEO). Big banks securitization of [[subprime loan]]s was already underway, <ref>{{cite web

|publisher=First Union Corporation (wachovia)}}</ref> but Raines had ideas to give them government guarantees against default by granting non-qualified borrowers, that is, borrowers with proven records of poor performance on their debt obligations government backing.

===Fannie Mae lowers guidelines for subprime borrowers 1999===

===Fannie Mae lowers guidelines for subprime borrowers 1999===

:''Main article:'' [[Community Reinvestment Act]]

:''Main article:'' [[Community Reinvestment Act]]