Home > Cases > Fannie Mae & Freddie Mac

Fannie Mae & Freddie Mac

Overview
News Commentary
Publication Articles - our lawyers quoted
Blog

We help investors recover their losses.

Contact our lawyers to discuss your case.

Fannie Mae & Freddie Mac

Overview

Government Takes Control Of Fannie Mae, Freddie Mac. Biggest Financial Bail-out in U.S. History

Deciding mortgage giants Fannie Mae and Freddie Mac no longer had sufficient capital to continue funding home mortgages, the U.S. federal government made the unprecedented decision to seize control of both companies on Sept. 7. It is the biggest financial bail-out in U.S. history.

Fannie Mae and Freddie Mac: Timeline Of Trouble

Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs), initially fashioned to help Americans buy a home of their own. Fannie Mae was created by Congress in 1938 and Freddie Mac in 1970. Both companies' business functions are similar to mortgage wholesalers: They provide a secondary market for home mortgages, purchasing the mortgages from lenders who originate them. Some of the mortgages are held by Fannie Mae and Freddie Mac, while others are pooled together as securities called collateralized mortgage obligations, repackaged and then sold to investors

Fannie Mae, Freddie Mac Bailout: Why Regulators Seized Control Of The Housing Mortgage Giants

In the end, the U.S. government takeover of housing mortgage giants, Fannie Mae and Freddie Mac was inevitable. The two companies were seized Sept. 7, as Treasury Secretary Henry Paulson placed Fannie Mae and Freddie Mac under a conservatorship, giving the reins for their future management to the Federal Housing Finance Agency (FHFA).

The Falling House Of Fannie Mae And Freddie Mac

Struggling mortgage titans Fannie Mae and Freddie Mac may have latched on to a temporary reprieve earlier this month with the federal government's proposed bail-out plan, but the real question remains: How did it all come to this in the first place?

Fannie Mae and Freddie Mac: A Rescue For Whom?

The turmoil surrounding Fannie Mae and Freddie Mac is not an overnight sensation - it has been gaining momentum for decades. Bad lending decisions, lack of sufficient capital reserves, and countless accounting problems have led critics and analysts alike to predict that the two mortgage giants were an accident waiting to happen - and ultimately taxpayers would be the ones to pay the price.