Mortgage NRT history

In 1893, small state banks started to issue bonds as acknowledgments of debts based on the credit and trust of the debtor alone.

15 year to 30 year loans: A typical mortgage before 1930 only had a 3 to 5 year period.

In 1934 the Federal Housing Administration (FHA) was created.

Fannie Mae is the nickname for the Federal National Mortgage Association (FNMA). The FNMA was created in 1938 in order to increase the amount of money available to borrowers using mortgage securitization.

Guild Mortgage was founded in San Diego in 1960 by Martin Gleich.

In 1968, the Government National Mortgage Association emerged to bring uniformity to the American mortgage market by bringing financial instruments to keep it afloat.

The birth of the Federal Home Loan Mortgage Corporation occurred in 1970 to help promote home ownership.

Since 1971, historical mortgage rates for 30-year fixed-rate loans have hit historic highs and lows due to various factors.

In 1972, Fannie Mae and Freddie Mac both began to purchase conventional mortgages that were not guaranteed or insured by the FHA or VA. Instead of seeking approval from the FHA or VA, loans could be insured by Private Mortgage Insurance (PMI) companies.

Continued hikes in the fed funds rate pushed mortgage rates to an all-time high of 18.45% in 1981.

The low-rate environment created a refinancing boom, with rates briefly dropping below 7% for most of 1998 — allowing many owners to refinance multiple times.

Guild founder Martin Gleich retired in 2007 and Mary Ann McGarry became CEO.

In September of 2008, both Fannie Mae and Freddie Mac were placed under government receivership.

After the COVID-19 pandemic hit the United States in 2020, the Federal Reserve cut the federal funds rate almost to 0% to stabilize the economy, as businesses closed to stop the spread of the virus and public health officials ordered Americans across the country to shelter in place.

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