Fannie Mae-No Politics (FNMA)

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Statements from FHFAOIG

The Federal Housing Finance Agency
(FHFA or Agency) was created on July 30,
2008, when the President signed into law
the Housing and Economic Recovery Act
of 2008 (HERA) * HERA charged FHFA
to serve as regulator of Fannie Mae and
Freddie Mac (the Enterprises) and of the
Federal Home Loan Bank (FHLBank) System
(collectively, the government-sponsored
enterprises, or the GSEs) and enhanced its
resolution authority.
In September 2008, FHFA exercised its
authority under HERA to place Fannie Mae
and Freddie Mac into conservatorship in an
effort to stabilize the residential mortgage
finance market. Concurrently, the Department
of the Treasury (Treasury) entered into a Senior
Preferred Stock Purchase Agreement (PSPA)
with each Enterprise to ensure that each
maintained a positive net worth going forward.
Under these PSPAs, U.S. taxpayers, through
Treasury, have invested a total of $187.5 billion
into the Enterprises since 2008. As conservator
of the Enterprises, FHFA succeeded to all
rights and powers of any stockholder, officer,
or director of the Enterprises and is authorized
under HERA to:
• Operate the Enterprises and
• Take such action as may be:
o Necessary to put the Enterprises in a
sound and solvent condition and
o Appropriate to carry on the Enterprises’
business and preserve and conserve the
Enterprises’ assets and property.
Initially, the conservatorships were intended
to be a “time out” during a period of extreme
stress to stabilize the mortgage markets and
promote financial stability. Now in their