Fannie Mae Case Study

The Federal National Mortgage Association, referred to as “Fannie Mae”, was founded as a government sponsored entity

The Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) were to central semi-public organizations that assisted buyers with qualifying for mortgages. The both the company failed during the year 2008 when they were left with no money and were bankrupt. Like every company they were unable to pay back the money and they were in the looking for the help of government via taxpayer’s money. Hence, after the bankruptcy of 2008, the government has utilized huge amount of the taxpayer’s money for not letting them to shutdown and recovering them.

"The Wall Street Journal" found that the current bond yields were 0.20. These bonds are issued by the US government. In view of the fact that Fannie Mae Securities is a mortgage-backed securities issued by FNMA. We have observed that Fannie Mae and Treasury yields are somewhat different because FNMA Personal Securities and Treasury bonds are issued by the US government. Therefore, we note that there should be some difference between the two rates. As a result, Fannie Mae gets money from investors and financial institutions and sells their mortgages.

credit insurers such as AIG). Firms/investors began to pull funding from any firm thought to be vulnerable to losses. The whole system collapsed as a result of mortgages being heavily leveraged and led to a financial meltdown ("The Recent Past."). The meltdown started to become visible when Bear Stearns was forced to sale in March of 2008. Then September of 2008 became an infamous month as Fannie and Freddie Mac were bailed out by the US government, Lehman Brothers filed for bankruptcy, Bank of America acquired Merrill Lynch, and AIG received emergency liquidity assistance from the Federal Reserve (Bernanke). Although some might erroneously believe that the Financial System does not greatly affect the Economy, Alan Blinder points out in his book After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead that “… Finance is more like the circulatory system of the economic body. And if the blood stops flowing… well, you don’t want to think about it” (5). The worst macroeconomic performance in the post World War II US resulted from the financial crisis according to Blinder

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.

Throughout the conversation, Colby never mentioned that the home was in First Look and that Fannie Mae would not accept offers from investors during this period. Colby provided limited information about the home and did not mention the neighborhood or the surrounding area. When asked, Colby paused to reference the property file and informed me that it needed work, which included carpet, paint, kitchen appliances, and ceiling work. I asked, "Are there other offers?" He paused to reference the property file and then informed me that there was not. I asked, "Is the power on?" He paused and then informed me that it was. Colby answered my questions about the home clearly.

The day Bear Stearns fell was one of the worse financial upsets of our time. As a major American investment company, they ran out of money. Bear Stearns was definitely one of the most exposed to the subprime mortgage crisis after being hit hard in the summer of 2007 when two of its hedge funds crashed. The Federal Reserve and JP Morgan Chase orchestrated an extraordinary rescue attempt that allowed Bear Stearns to borrow emergency money to stay alive and steady. Consequently, in an effort to prevent a crisis on Wall Street.

In 2006, plaintiffs obtained a $1.3 million loan from Countrywide Home Loans, Inc. secured by residential real property used by plaintiffs as their residence.

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.

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

In October of 2008 Congress, passed a $700 billion rescue bill to bail out, and possibly save, the doomed U.S. and global financial systems from collapsing. This decision was only a piece to the $1 trillion government plan to level off the stock market and unfreeze the credit which was needed after the collapses of the financial institutions of Lehman Brothers and Washington Mutual. The government also stepped in and federally took over such institutions as Fannie Mae and Freddie Mac, which together hold about $5.4 trillion in mortgage loans; 45 percent of the national total. The governmental firms were heavily burdened because of bad investments in subprime mortgages and

(Toronto, ON) Mortgage rates vary greatly based on multiple factors. The selected lender, whether the rate is variable or fixed and the term length of the loan are important in this process, thus potential homebuyers need to gather information on current interest rates before selecting a mortgage product. For example, on March 18, 2017, a five-year fixed rate could be 2.39 percent, while a 3-year variable rate could be 2.25 percent with prime 0.45. Individuals looking to obtain a home should head to Which Mortgage (http://www.whichmortgage.ca) with information about the amount they wish to borrow, interest rates for different loan products and the loan period to determine which option best fits into their budget.

Eagle Loan Co. is a loan agency that is located in San Antonio, Texas. They have many years of experience. Eagle Loan Co. provides signature loans, quality furniture and appliances, and tax services. Eagle Loan Co offers tax accounting services with the goal of maximizing their clients’ refund, while lessening their tax liability and reducing their risk of a tax audit. They offer quality tax services while keeping their rates

North Star Mortgage and Realty is a mortgage brokerage firm that is located in San Jose, California. They are serving the Silicon Valley/Bay Area and the surrounding counties. Their loan options include conventional home loan, FHA home loan, VA home loan, jumbo loans, portfolio loans, reverse mortgage, second mortgage, and first time buyers. North Star Mortgage and Realty is associated with the Equal Housing Opportunity.

FannieMae is a company that makes capital by lending money to people who need mortgages and by borrowing money at low interest rates. FannieMae is able to make money in any kind of economy. During times of low interest rates they make money on people who bought fixed rate mortgages at a time of high interest rates. They also have a hard making money during this time because their marginal percentage is smaller and they make less of a profit. During times of high interest rates, they lose money on people who bought fixed rate mortgages at low interest rates. They also make a lot of assets during this time because they borrow from the federal reserve or banks at lower interest rates and lend