From here.Fannie Mae (FNMA) and Freddie Mac (FHLMC) are the two pillars of U.S. housing credit for nearly four decades.
The collapse of the U.S. housing market, which is accompanied by a strong reduction in the number of loan applications, severely compromises the ability of both to repay their debts. They are financed primarily because receiving authorization to borrow at preferential rates, to lend themselves to the private credit agencies U.S. or guarantee their loans. The higher the volume of loans decreases, the lower their revenues fall.
The collapse of the U.S. housing market, which is accompanied by a strong reduction in the number of loan applications, severely compromises the ability of both to repay their debts. They are financed primarily because receiving authorization to borrow at preferential rates, to lend themselves to the private credit agencies U.S. or guarantee their loans. The higher the volume of loans decreases, the lower their revenues fall.
Translated from an article from the french newspaper Le Monde, 21/08/2008.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a government sponsored enterprise (GSE).
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