Get Reforming Fannie And Freddie - Cato Institute

The FHFA regulates, enforces, and monitors Fannie and Freddie's capital standards and limits the size of their mortgage investment portfolios. HUD is responsible for Fannie and Freddie's general housing missions. Mortgage lending discrimination is illegal.

It was the best of both worlds — until the housing market melted down in 2008. The government's bailout of Fannie and Freddie has cost $191 billion.

Concurrently, the Treasury entered into senior preferred stock purchase agreements with each institution. Under these agreements, U.S. taxpayers ultimately injected $187.5 billion into Fannie Mae and Freddie Mac.

They perform an important role in the nation's housing finance system – to provide liquidity, stability and affordability to the mortgage market. They provide liquidity (ready access to funds on reasonable terms) to the thousands of banks, savings and loans, and mortgage companies that make loans to finance housing.

Fannie Mae headquarters at 3900 Wisconsin Avenue, NW in Washington, D.C. As of 2022, Fannie Mae and Freddie Mac remain under conservatorship, and after more than repaying their Treasury loans are building capital reserves for an expected eventual exit.

August 17, 2022 | One of the more amusing tasks we have at The Institutional Risk Analyst is explaining to readers, old and new, why the government sponsored entities (GSEs), Fannie Mae and Freddie Mac, will likely sit in conservatorship indefinitely unless and until Congress acts first.

As of 2022, Fannie Mae and Freddie Mac remain under conservatorship, and after more than repaying their Treasury loans are building capital reserves for an expected eventual exit.

In general, Fannie Mae tends to buy loans from larger commercial banks and lenders. Freddie Mac usually buys loans from smaller banks or credit unions. This is the primary difference between the two.