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FNMA is a [[New Deal]] agency founded in 1938 by the U.S. government which did more to benefit big [[Wall Street]] banks than the common man by allowing banks to re-lend the same money over and over again versus ordinary folks who could scarcely afford a home during the [[Great Depression]].
FNMA is a [[New Deal]] agency founded in 1938 by the U.S. government which did more to benefit big [[Wall Street]] banks than the common man by allowing banks to re-lend the same money over and over again versus ordinary folks who could scarcely afford a home during the [[Great Depression]].
Beginning in 1997, FNMA started guaranteeing to purchase mortgaged from loan originators on borrowers with demonstrated credit unworthiness, i.e. subprime borrowers and deadbeats. Some of these loans than were snuck in to larger packages of prime mortgages with guaranteed credit worthiness precipitating the [[2008 finincial crisis]].
Beginning in 1997, FNMA started guaranteeing to purchase mortgaged from loan originators on borrowers with demonstrated credit unworthiness, i.e. subprime borrowers and deadbeats. Some of these loans than were snuck in to larger packages of prime mortgages with guaranteed credit worthiness precipitating the [[2008 financial crisis]].
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>
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>