Ginnie Mae history

On December 2, 1969, President Richard Nixon dismissed Raymond H. Lapin as chief of Fannie Mae.

Bartke, Richard W. "Fannie Mae and the Secondary Mortgage Market." Northwestern University Law Review 66 (1971): 1–78.

As interest rates began to rise in 1979, Fannie Mae faced the most critical period in its history.

Of the $400 billion Fannie Mae has pumped into the nation's mortgage industry in the past half century, $300 billion of it came after 1980.

To attract new investors to the secondary mortgage market, in 1981 Fannie Mae began selling mortgage-backed securities (securities collateralized by cash flows from pools of mortgage loans) with a guarantee of timely payment of principal and interest, whether or not the original borrowers paid.

By 1985, Fannie Mae was profitable again.

Housing America: An Overview of Fannie Mae’s Past, Present and Future, Washington, D.C: FNMA, 1986.

Continuing to respond to changes in the home finance market, Fannie Mae began marketing real estate mortgage investment conduits (REMICs) in 1987.

By 1988, Fannie Mae had issued more than $140 billion in mortgage-backed securities.

Fannie Mae’s total income in 1990 was $1.9 billion with 34 percent coming from fees and other service income and 66 percent from investment income.

In 1991 FMF earmarked more than 50 percent of its grants for programs supporting housing, community development, and social concerns.

In 1992, FMF made its largest grant to date, $5.5 million to help establish the National Center for Lead-Safe Housing.

Still, the entire industry paid attention in March 1994 when Fannie Mae announced its $1 trillion initiative, vowing to provide home mortgages to ten million families, focusing primarily on low-income and traditionally underserved borrowers,” wrote Blaise Zerga for InfoWorld in May.

James A. Johnson, who had guided Fannie Mae through the decade of growth, was succeeded as chairman and CEO by Franklin D. Raines in 1999.

According to Money magazine, Fannie Mae and FMF had spent about $75 million in advertising since 2000 to position itself in the public consciousness as a purveyor of the American Dream of homeownership.

Available online at <www.fanniemae.com> (accessed November 12, 2003).

In 2007 the Federal Housing Reform Act transferred these responsibilities to the new Federal Housing Finance Agency (FHFA).

To prevent further losses that would worsen the crisis and damage the United States economy, both corporations were placed under the conservatorship of the United States government in September 2008, though neither was legally entitled to any direct government backing, insurance, or support.

However, by 2012, Fannie Mae had regained its footing, started paying back the government and returned to profitability.

In 2014, Fannie Mae had paid back all funds it received when it first went under conservatorship and has since put billions into the United States Treasury.

Information Circular 2/2016 of Bank of Spain