Fannie Mae-No Politics (FNMA)

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Is a conservatorship temporary or permanent?

There is no inherent duration in a conservatorship. The organic statute or order creating the conservatorship defines its goals, operations, and conditions for existence, differing from the FDIC receivership context, which does not anticipate a return to business. In this case, the Federal Housing Finance Agency has stated that the conservatorship will terminated upon successful completion of its plan to restore the companies to safe and solvent condition
(“Fact Sheet – Questions and Answers on Conservatorship”. http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf)