The Demise Of Fannie Mae (FNMA) and Freddie Mac (FMCC)? [Federal National Mortgage Assctn Fnni Me, Federal Home Loan Mortgage Corp]

Share This Article
November 3, 2014 1:42pm ETF BASIC NEWS

wall-street-etfIf the next Congress wants to accomplish something, it might take up the matter of Fannie Mae (OTCBB:FNMA) and Freddie Mac (OTCBB:FMCC), the federal housing agencies that effectively went bankrupt in 2008 and were rescued through a $187 billion taxpayer bailout.

Fannie and Freddie are profitable now, and they’ve paid back all the taxpayer funds that kept them afloat during the worst housing bust since the 1930s. Yet they’re still owned and operated by the U.S. government, a status that was supposed to be temporary when a government conservator took control of the two companies in 2008. “It’s been six years now that the conservator has been overseeing and directing the actions of Fannie Mae and Freddie Mac,” Ed DeMarco, who ran that conservatorship from 2009 to early 2014, tells me in the video above. “This is not a healthy condition.”

The problem is there’s no consensus about what to do with Fannie and Freddie. The government bailout allowed them to continue operating during the 2008 financial meltdown and the deep recession that followed. Without them, the housing market would have essentially shut down and a recession probably would have become a depression.

Watch the video below for more details:

9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from!

Most Popular

Explore More from

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again! respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories