Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Before and during the Great Depression banks would only lend money for residential real estate in the US for short time periods like 5 years with a balloon payment due at the end. This exacerbated and likely helped prolong the Great Depression. In the aftermath of the Great Depression, FDR and the US Congress created FHA and Fannie Mae to buy mortgages from banks and the 30 year fixed rate PREPAYABLE AT WILL mortgage was born.

Canada doesn't have them even today and few countries offer PREPAYABLE AT ANY TIME 30 year frms. I think Americans today don't realize and take for granted their access to this product.

“Nothing lasts longer than a temporary government program.”

- Ronald Reagan