Federal takeover of Fannie Mae and Freddie Mac
Action by the U.S. Treasury to lessen the subprime mortgage crisis / From Wikipedia, the free encyclopedia
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In September 2008, the Federal Housing Finance Agency (FHFA) announced that it would take over the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Both government-sponsored enterprises, which finance home mortgages in the United States by issuing bonds, had become illiquid as the market for those bonds collapsed in the subprime mortgage crisis. The FHFA established conservatorships in which each enterprise's management works under the FHFA's direction to reduce losses and to develop a new operating structure that will allow a return to self-management.[1][2]
This article may require cleanup to meet Wikipedia's quality standards. The specific problem is: uses future tense for past events, needs update. (March 2023) |
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.[3]