Case Study Fannie Mae

The floor plans come in one, two and three bedrooms with designer interiors and 10 foot ceilings. There is a full appliance package in each unit including a washer and dryer. The kitchens have pantries and there are ceiling fans in the apartments.

Court system, shows that they do not plan to change these behaviors, because they are using the Court to unknowingly aid them in continuing to break the law.

There are a wide array of one and two bedroom floor plans with fine styling throughout, which includes granite countertops, wood-style flooring and modern lighting throughout the apartment. There is a washer and dryer in every apartment and the kitchen has an island and bar. There are ceiling fans throughout and energy efficient appliances that include

The barriers to enter seems to be on the medium scope of the analysis and this is because to enter the mortgage market there are many regulations set by government and other institutions to guarantee the clarity and transparency of the loans. Also, to enter this specific market there is the need for high capital investment which in todays economic is hard to achieve.

During the great depression in 1934 many people didn’t have jobs. Not having jobs meant that it would be awfully hard for them to obtain a loan from banks in order to purchase homes. The government decided to help the American people by creating the Federal Housing Administration (FHA) which basically stepped in and allowed banks to offer mortgages to more people with the promise that the banks would get their money back. The FHA finances itself with insurance premiums that they charge borrowers as well as interest that they receive on reserves. They use these funds to underwrite more loans which helps out people with their mortgages.

Newly renovated one and two bedroom floor plans showcase a number of upscale features, perfect for the busy professional seeking a modern home. Cathedral-style ceilings, wood burning fireplaces and private patios add sophistication to each unit. In addition, all homes are equipped with modern kitchens, a full-sized washer and dryer, spacious walk-in closets, and stylish crown molding.

The reporter received a call from Ms. Merriweather on 09/01/15 stating on 08/31/15 her daughter told her that her father has forced her to have sex. The reporter met with Fannie but the child was withdrawn and did not disclose much information about the allegations. During a meeting with the child on 09/01/15, Fannie told Ms. Reed she did not want to discuss the issue but told her it happened once; the specific details are unknown. It’s unknown when the child last visited her father but she last had contact with him this past summer. Fannie lives with her mother primarily and has occasional visits with her father. It’s unknown if Fannie has been taken to see a doctor at this time but her mother mentioned she will be taking Fannie for an examination.

Fannie and Freddie remain two of the largest financial institutions in the world, responsible for a combined $5 trillion in mortgage assets. The primary function of Fannie Mae and Freddie Mac is to provide liquidity to the nation’s mortgage finance system. Fannie and Freddie purchase home loans made by private firms (provided the loans meet strict size, credit, and underwriting standards), package those loans into mortgage-backed securities, and guarantee the timely payment of principal and interest on those securities to outside investors. Fannie and Freddie also hold some home loans and mortgage securities in their own investment portfolios.

There were clear, bright images of the brick ranch home. It had a nice sized front yard with manicured landscaping and a one car attached garage. There was a large fenced backyard with a deck and a shade tree.

I Brianna Lozano, had previously declined both federal loans offer to me. After enrolling into the payment plan for the fall semester of 2016, I've realized my parent income alone will not cover room & board expenses.

There were many clear, bright interior images of the open floor plan that had fresh paint, new floors, and appliances. There was a long entry with neutral flooring. There were formal living and dining rooms with a trey ceiling and a lovely lighting fixture. In addition, there was a duplicate image of the living room.

The split-level home had the “New” logo stating that the Fannie Mae-approved repair contractors had performed certain repairs. It noted that Fannie Mae was offering an incentive offer for selling agents whose buyers purchased and closed on a selected HomePath property. The agent provided several bright images. Some of the images showed only partial views of the rooms and there was a duplicate image of the exterior.

There were sharp, clear outside images. That was surrounded by mature trees. It had a front deck, another side entry, and an extra-large front yard. There was a huge deck in the good-sized backyard. An additional image showed a street view.

Congress is continuously attempting to decide if Fannie Mae should be privatized or owned by the government. One thing the government should focus on is reducing the monopoly characteristics in Fannie Mae. With government intervention, Fannie Mae should be broken up into many smaller companies. This would spread the risk among the financial market and Fannie Mae would have to compete against other companies to stay in business. If unfortunate events lead to another economic crisis, the financial pressure would be placed on more than one company and investors would not have to rely on Fannie Mae to stay afloat (Reiss, David, 951-952). This idea was recently discussed among two senators, Bob Corker and Mark Warner who consider splitting Fannie’s single-family business from their multifamily business. They think the single-family businesses could then be split again into smaller companies (www.money.cnn.com).

The congress has determined that the executive compensation system is unreasonable during the crisis in 2000s. Fannie Mae’s compensation committee was equally in effective. The committee allowed the company’s CEO, Franklin Raines, to select the consultant employed to design the mortgage firm’s executive compensation plan and agreed to a tiered bonus plan that would permit Raines and other senior managers to receive maximum bonuses without great difficulty. Raines receives $52 million in performance-based bonuses and $90 million in total compensation during 1999 and 2004. The Office of Federal Housing Enterprise Oversight found that Fannie Mae had cautiously overstated earnings to obtains bonus linked to financial performance. Securities and Exchange Commission also found evidence which indicates that Fannie Mae is involve in improper accounting and required it to restate its earnings between 2002 and 2004 by $6.3 billion. Moreover, Freddie Mac was also involved in manipulative accounting to receive bonuses. Freddie Mac’s CEO Richard Syron received $19.8 million in compensation while the mortgage company’s share decline from a high $70 in 2005 to $25 in the end of the year 2007.