Fannie MaeFannie Mae is a leading mortgage company and one of the most financially successful companies in its industry. Considering the key features of the organization that have resulted in its current position, this report offers a brief but concise overview of the company. The organization began as part of Roosevelt's New Deal, a program launched by the onslaught of the global economic depression in the United States. 1930s and the complete collapse of the real estate market. Created by Congress as the Federal National Mortgage Association in 1938, the organization's primary mission was to encourage homeownership by providing money to local banks and ensuring that the residential mortgage market was well financed by the creation of a secondary mortgage market (Cottle 1998, Allie Mae 2004). In 1968, Lyndon B. Johnson transformed Fannie Mae into a "government sponsored enterprise" (GSE) due to complete monopolization by the second mortgage market business (Cottle 1998). Cottle explains that "as a GSE, the company is subject to congressional oversight and certain limitations on its activities, but it is nonetheless a private, for-profit, publicly traded company charged with earning money for its shareholders” (p. 18). ). The U.S. President appoints several board members, and the U.S. Treasury Department approves the issuance of Fannie Mae debt. And he approved and approved and approved. Fannie Mae and Freddie Mac have virtually unlimited access to capital, at financing costs lower than rates otherwise available in the market. Simply put, this means that Fannie does not have to register securities with the government, does not have to pay state or local income taxes, and because the government sponsors the company, it is considered a government entity when it really is not. which explains the strong financial growth over the history of the organization as well as an almost unlimited channel to capital (Mckinley 1998). As previously mentioned, the primary goal of the organization is to ensure that the residential mortgage market is well financed. Indeed, over the past 31 years, Fannie Mae has provided more than $2.8 trillion in mortgage financing (PR News 2000) and helped more than 63 million families realize their dreams of homeownership (Fannie Mae 2006). . You can't just call Fannie Mae and ask its loan officers for the going rate on a seven-year ARM; it does not lend money to retail home buyers. Instead, it provides liquidity to lenders by providing liquidity in the secondary mortgage market..