Fannie Mae was created in 1935 to free up bank capital by President Franklin Roosevelt after the United States Corporation became bankrupt for the second time in America's history.
The first bankruptcy happened in 1871 when the national government could not pay back the money borrowed from the International Bankers and began to pay the interest only.
At this time the United States became a private Corporation and was awarded the 10 square mile area known as Washington, DC, the capitol of this Corporation.
Also at this time in history, our national government ceased to exist and the United States Corporation was created by the International Bankers.
In 1968, President Lyndon Johnson, wanting to remove Fannie Mae from the government balance sheet, made it a public company, thereby socializing its risks and privatizing its profits.
Nearly every single mortgage bond issued today comes from Fannie Mae, Freddie Mac, or Ginny Mae.
Since there are very little private residential mortgage-backed securities issued, the levels outstanding continue to drop.
It's finally to a point, according to Howard Esaki, Global, Head of Structured Finance Research at Standard & Poor rating company, where agency debt is eclipsing the once massive private market.
"The rise in agency RMBS outstanding almost offset the decline in the non-agency sector in Quarter 2, according to Fed flow-of-funds data," Esaki said.
"$10 trillion in home mortgage debt remained outstanding.
The Community Reinvestment Act (1977), meant to encourage lending to high-risk borrowers, often minorities, allowed radical groups like ACORN - Association of Community Organizations for Reform Now - to force banks to make subprime loans.
Under President Bill Clinton, the Department of Housing and Urban Development relaxed credit standards, requiring banks to make a requisite number of loans to low-and moderate-income borrowers.
In 2000, Clinton effectively deregulated credit-default swaps which led later to the Federal Reserve's AIG's insolvency, but the Federal Reserve's IRS is in full swing collecting fees for the International Bankers due to using their fiat or monopoly money also known as Federal Reserve Notes and collecting this fee from you and every other uninformed American in the form of Income Taxes.
Everyone in the 50 States of the united States of America are led to believe by the International Bankers that "We the People" owe Income Taxes, fraudulently put upon us by the United States Corporation every year, but the United States Corporation only covers Washington, DC and its territories and not in control of the 50 States! Fannie and Freddie's growth fueled Wall Street's securitization of subprime loans (rated by incompetent agencies) by becoming the primary customers of top-rated subprime mortgages.
By late 2006, these subprime mortgages constituted almost half of all housing loans.
The inevitable defaults and crisis followed.
Big government, under the International Bankers rule is the cause of our mortgage and foreclosure crisis.