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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 financial 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]]. As usual, [[politician]]s loosened the screws on borrowing and easy credit terms with the promise of "a home of your oen" or "the American dream" to buy votes. And again when the system collapsed, it was poor people and renters who suffered most having to chip in to bailout the banks and non-creditworthy homeowners, and the loss of employment opportunities for a decade afterward.
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>