2002 Fannie Mae Congress

Learn about the 2002 Fannie Mae Congress.

Federal National Mortgage Association better known among Americans as Fannie Mae is the financial institution that came in to being to provide mortgage loans to those people who needed assistance to buy their homes. With most homes not within the budget of many individuals and families, Fannie Mae arrived as savior.  Fannie Mae started providing loans to everyone who desired to buy their dream homes across the United States.

President Franklin Roosevelt in 1938 founded Fannie Mae to bring liquidity in the mortgage market. In 1968, Fannie Mae turned into a corporation and was doing excellent business until the sub prime crisis took a huge hit. In 2002, Fannie Mae, which was the United Sates biggest underwriter of mortgage loans, was pressurized into providing loans to the middle and lower income groups.

This move was ratified by the congress in 2002. The 2002 Fannie Mae congress thus began to dole out loans to almost the entire nation and this move was felt in the stock markets as the corporation was forced to show positive results in its profit growth while the real picture was the very opposite. The corporation was facing pressure from banks, mortgage companies and lending institutions to provide loans to people who had bad credit known as sub prime borrowers.

 These sub prime borrowers could only avail loans from private lenders who charge huge interests on their loans. 2002 Fannie Mae Congress was forced to provide mortgage loans to sub prime borrowers. These sub prime borrowers with bad credit rating soon began to default on their mortgage loans leading to a deep crisis in the financial markets. Hundreds of billions of dollars were provided to these borrowers to help them achieve their dream homes.

In 2002, because of the resolution of the Congress, Fannie Mae having begun to provide mortgage loans to sub prime borrowers began to see red in its accounts.  The sub prime crisis has emerged into monstrous levels with the federal government bailing out the ill-fated corporation. The worst is yet to come.

2002 Fannie Mae Congress