Fannie Mae and Freddie Mac Case Flashcards
What year was Fannie Mae created?
1938
Why was Fannie Mae created?
They wanted to make affordable housing more available and to encourage greater investment in real estate market
What is Fannie Mae?
It’s a shareholder-owned corporation with a federal charter
What year did Fannie Mae switch from federal to privately owned?
1968
What was Fannie Mae target audience when they become privately owned?
First-time buyers and minorities
How long did Fannie Mae have double digit earnings?
For a decade
What was Fannie Mae’s total profits from 2001-2004?
$24 billion
How much was Fannie Mae’s stocks trading for in 2004?
Over $80 per share
What was Fannie Mae named in 2004?
The most ethical company
What did Fannie Mae do to the numbers?
They fudged numbers just enough to make a commission earnings bonus
What happened to Fannie Mae in 2005?
The had a meeting with the SEC and their CEO and CFO were removed by the board
Who become Fannie Mae’s new CEO in 2005?
Daniel Mudd
What did Mudd lead Fannie Mae to do?
To guarantee $270 billion in risky loans
What major event happened in 2008?
The stock market crashed
What happened to Fannie Mae because of the stock market crash?
The government had a $200 billion buyout and the company went back to being government owned
