Industry News

No need to worry about Fannie Mae

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Fannie Mae, the nation's top source of financing for home mortgages, will likely survive the accounting problems, investigations, and regulatory actions that it now faces – and it must – say some industry sources. The government-sponsored entity is too important to the housing market to be dismantled or rebuilt, they say. In the last week, Fannie Mae's stock has dropped 18 percent, equivalent to $16 billion in market capitalization. The U.S. Congress has launched a committee hearing on the firm's accounting woes, and the Office of Federal Housing Enterprise Oversight issued a scathing report on Fannie Mae. The stakes are high: Fannie Mae and Freddie Mac, another secondary mortgage market titan, together own or guarantee about half of the U.S. mortgage market. Fannie Mae alone has provided an estimated $6.3 trillion in mortgage financing for 63 million families since 1968. "We're certainly confident that Fannie Mae is going to be with us for many years to come," said Steve...