Fannie Mae
Federal housing lender
Fannie Mae is the Federal National Mortgage Association, a government-sponsored enterprise that buys mortgages from lenders and packages them into mortgage-backed securities.
Created during the Great Depression to expand homeownership, it operates in the secondary mortgage market alongside its sibling Freddie Mac.
Fannie Mae guaranteed the loan.
Under top credit tier
- bailoutEmergency aid preventing bankruptcy
- conservatorshipCourt-appointed care management
- housing bubbleUnsustainable property price surge
- collapseSudden structural failure
recession · credit crunch · housing crash · systemic risk · too big to fail · taxpayer · reform · Dodd-Frank
Court-appointed care management
- Freddie MacSecondary mortgage market corporation
- quasi-governmentalPartly under state control
- housing policyRules governing residential development
- regulatory oversightOfficial monitoring of compliance
Obtain new loan terms
- foreclosureLender seizes mortgaged property
- loan modificationAltered borrowing agreement terms
- forbearancePatient self-control, delayed enforcement
- amortizationGradual debt reduction schedule
escrow · principal · interest · fixed-rate · adjustable-rate · credit score · down payment · debt-to-income
Exchange for existing securities
- tranchePortion of grouped securities
- poolingMerging shared contributions
- bondBinding tie or connection
- yieldProduce or relinquish
liquidity · capital markets · fixed income · asset-backed · financial instruments · risk management · credit enhancement · servicer
Legally possessing residential property
- affordable housingShelter scaled to earnings
- first-time buyersThose acquiring property initially
- single-familyFor one household only
- multifamilyHousing multiple separate households
residential · down payment assistance · home prices · appraisal · property values · low-income housing · rental housing · housing supply
subprime
Under top credit tier
- bailoutEmergency aid preventing bankruptcy
- conservatorshipCourt-appointed care management
- housing bubbleUnsustainable property price surge
collapse · recession · credit crunch · housing crash · systemic risk · too big to fail · taxpayer · reform · Dodd-Frank · oversight
conservatorship
Court-appointed care management
- Freddie MacSecondary mortgage market corporation
- quasi-governmentalPartly under state control
- housing policyRules governing residential development
refinance
Obtain new loan terms
- foreclosureLender seizes mortgaged property
- loan modificationAltered borrowing agreement terms
- forbearancePatient self-control, delayed enforcement
amortization · escrow · principal · interest · fixed-rate · adjustable-rate · credit score · down payment · debt-to-income · loan-to-value
secondary market
Exchange for existing securities
- tranchePortion of grouped securities
- poolingMerging shared contributions
- bondBinding tie or connection
yield · liquidity · capital markets · fixed income · asset-backed · financial instruments · risk management · credit enhancement · servicer · investor
homeownership
Legally possessing residential property
- affordable housingShelter scaled to earnings
- first-time buyersThose acquiring property initially
- single-familyFor one household only
multifamily · residential · down payment assistance · home prices · appraisal · property values · low-income housing · rental housing · housing supply · real estate
- Double First NamesMary Jane, Mary Ann, Tommy Lee, Norma Jean
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- Federal ProgramsSocial Security, Medicare, Medicaid, food stamps, SNAP
- Financial Crisisfinancial crisis, Great Recession, recession, credit crisis, bank failures
- financial institutionsbanks, central bank, commercial banks, investment bank, investment banks
- housing crisishousing bubble, housing crash, subprime mortgages, foreclosures, subprime loans
Fannie MaeWells Fargo
Major American bank
Bank of America · JPMorgan Chase · direct lender · retail bank · credit union