Fannie Mae (actually federal National Mortgage Association FNMA ) is a government- funded U.S. company, which was founded as a state-owned bank in 1938 as part of the New Deal and privatized in 1968. When privatization was originally created from a corruption of the abbreviation FNMA Fannie Mae was adopted as the name under which the business occurs. The company is but further down the Federal National Mortgage Association.
She is a pure mortgage bank and the world's largest institution in this sector. The mortgage to be refinanced guaranteed by the U.S. government neither. As a near-government companies Fannie Mae receives However, first-class credit ratings by the rating agencies and can thus refinance for a lower interest rate than other banks.
Along with Freddie Mac, the second largest, also government-sponsored mortgage lender in the U.S., it has issued to finance the mortgage bonds worth $ 2.4 trillion, making it one of the world's biggest debtors. Because the real estate boom, which now continued in the U.S. since the mid- 1990s, financial markets saw an increasing risk that a decline in housing prices Fannie Mae could be in serious trouble, which, given the amount of debt to global turmoil in the financial markets could lead and is now also occurred.
In July 2008, the head of the Federal Reserve Bank of St. Louis, William Poole, Fannie Mae designated for the first time as a " de facto insolvent " and called on the policy to seek rescue options. On 13 July 2008, the U.S. government announced to support Fannie Mae and Freddie Mac billions of dollars in loans and equity purchases in order to avoid bankruptcy. Soon after, on September 7, 2008 the competent supervisory authority, the Federal Housing Finance Agency ( FHFA ) took control of Fannie Mae and replaced the former CEO Daniel Mudd. In 2008, Fannie Mae made $ 58.7 billion loss. In the 3rd quarter of 2009, Fannie Mae made a loss of 19 billion dollars and more dollars requested state aid 15 billion. So far, the real estate bank had already received almost 61 billion state aid.
In August 2011 the company has asked the government for another $ 5.1 billion. The total amount of government financial transfers to the two quasi-government mortgage companies Fannie Mae and Freddie Mac will amount to $ 169 billion. On May 10, 2013 Fannie Mae settled its debt of about 60 billion dollars to the U.S. government.
In November 2013 it was announced that Fannie Mae is suing for " Libor manipulation " against the German bank and eight other major banks. A spokesman said that the manipulations of the international reference interest rate would the company leading to losses of about 800 million dollars ( 580 million euros ). To a lawsuit in federal court in New York, the company can see from responsibility for their resource constrained. In a comparison in federal district court to mortgage transactions from the years 2005 to 2007, the German bank agrees with the U.S. regulator the Federal Housing Finance Agency ( FHFA ) to a compensation payment of € 1.4 billion to Fannie Mae and Freddie Mac.