Difference between revisions of "Fannie Mae"
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'''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. The company was bailed out by the US Government (along with [[Freddie Mac]]) after making billions in loans available to borrowers with demonstratively poor credit histories. 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]]. | '''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. The company was bailed out by the US Government (along with [[Freddie Mac]]) after making billions in loans available to borrowers with demonstratively poor credit histories. 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]]. | ||
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| + | ==Fraudulent accounting 1998 -2006== | ||
| + | In 2006 Fannie Mae was wracked by an accounting scandal. Regulators found a culture of corruption where management overstated earnings by $11 billion during the late 1990s and reaped huge bonuses for themselves.<ref>[http://articles.chicagotribune.com/2006-05-24/business/0605240197_1_senior-management-manipulated-accounting-fannie-mae-executive-officer-franklin-raines `Arrogant and unethical': Fannie Mae to pay $400 million penalty,] Robert Manor, ''Chicago Tribune'', May 24, 2006.</ref> As Fannie Mae was taken into conservatorship in September 2008 it was reported [[Barack Obama]] received more than $120,000 in contributions from the [[government sponsored entity]], more than any other political candidate for office since 1989.<ref>[http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html Update: Fannie Mae and Freddie Mac Invest in Lawmakers], By Lindsay Renick Mayer, September 11, 2008. opensecrets.org</ref> | ||
==Lobbying== | ==Lobbying== | ||
Revision as of 21:10, March 1, 2013
Fannie Mae is the common name for the Federal National Mortgage Association (FNMA). [1] 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. The company was bailed out by the US Government (along with Freddie Mac) after making billions in loans available to borrowers with demonstratively poor credit histories. It was placed in the conservatorship 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.
Fraudulent accounting 1998 -2006
In 2006 Fannie Mae was wracked by an accounting scandal. Regulators found a culture of corruption where management overstated earnings by $11 billion during the late 1990s and reaped huge bonuses for themselves.[2] As Fannie Mae was taken into conservatorship in September 2008 it was reported Barack Obama received more than $120,000 in contributions from the government sponsored entity, more than any other political candidate for office since 1989.[3]
Lobbying
The top three recipients of campaign contributions from Fannie Mae over the last two decades were all Democrats. [4]
No.1 Connecticut Senator and former DNC ChairmanChris Dodd
No.2 Illinois Senator and later President Barack Obama
No.3 Massachusetts Senator and later Secretary of State John Kerry
References
- ↑ Blaming Fannie and Freddie, Ben Zimmer, Visual Thesaurus, September 16, 2008
- ↑ `Arrogant and unethical': Fannie Mae to pay $400 million penalty, Robert Manor, Chicago Tribune, May 24, 2006.
- ↑ Update: Fannie Mae and Freddie Mac Invest in Lawmakers, By Lindsay Renick Mayer, September 11, 2008. opensecrets.org
- ↑ White House Fires Back at Times Over Housing Meltdown Story Fox News, December 22, 2008