Profile Overview: Fannie Mae (Federal National Mortgage Association)
Fortune 1000 Rank: 5
- 5 in FORTUNE 1000 (May 2011)
- 5 in FORTUNE 500 (May 2011)
- 5 in FORTUNE 500 (May 2011)
|Fannie Mae||Rank 5, Public, GSE|
|Number of Employees||7,300|
|HeadQuarters||3900 Wisconsin Ave. NW Washington, DC 20016-2892|
|CEO||Michael J. Williams|
|Current Market Cap||226.4m|
|Company Financials||$ millions||% Change From||Latest Quarter $ Millions|
Created in 1968 by President Franklin D. Roosevelt, Fannie Mae is a name that echoes in the American consciousness. Those who were unaware of this behemoth financial company before 2008, who thought the name "Fannie Mae" was someone's aunt, they almost certainly are aware of it now. In an unprecedented move - and one that shows clearly how important the health of this company is to the US economy - the United States Federal Government placed the mortgage company into conservatorship. This status, closely akin to bankruptcy, essentially translated to the government taking over temporarily in a desperate move to keep the company from failing and potentially causing an economic catastrophe that would make the current recession seem like Easy Street. This makes the company what is known as a "GSE", or, Government Supported Enterprise. There are plans to reduce this support over time as Fannie Mae gets back on its feet.
Simply put, the essential function of the company is to serve as a buffer and go-between in the mortgage market. Lenders who otherwise might be wary about certain potential clients are able to instead sell to Fannie Mae. The mortgages are then repackaged and resold, and lenders can safely work with clients they might not otherwise. The end result of all the paperwork shuffling is Fannie Mae owning/guarantees "about $3.1 trillion in home loans, or more than a quarter of all outstanding mortgages in the US." (Hoover's) With the knowledge that over 25% of the US could be out of a home with the finance company's failure, it is little wonder the government stepped in.
Fannie Mae is often mentioned in conjunction with it's brother company, Freddie Mac, and the term "Fannie and Freddie" has become irreversibly associated with home financing, and a major part of the English lexicon, as a result. While their role in the 2008 housing crisis may be a moot point debate at this juncture, a hotter debate is still going on regarding their policy on debt forgiveness - or rather, the lack thereof. According to the New York Times, their portfolio is worth an estimated 1.5 trillion; all of which, it seems, they are determined to hold onto on the basis of it being 'bad for business', despite the fact that as a result more and more homeowners are either losing their homes or sinking further into debt. In fairness, their side of the issue is that such practice will lead to future lenders raising prices on the idea of borrowers reneging their debt as a matter of course. 
One must wonder, however, if the current ramifications are worth future suppositions.
 Company About Us Page
- Philip A. (Phil) Laskawy
- President, CEO, and Director
- Michael J. (Mike) Williams
- EVP Operations and Technology
- Edward G. (Ed) Watson
- EVP Multifamily
- Kenneth J. (Ken) Bacon
- EVP and Operating Plan Program Executive
- Linda K. Knight
- Fiscal Year-End
- 2010 Sales (mil.)
- 1-Year Sales Growth
- 2010 Net Income (mil.)
- 2010 Employees
- 1-Year Employee Growth
Top 5 Competition
- General Electric
- Freddie Mac
- INTL FCStone
- Marsh & McLennan
- Ameriprise Financial
External Links & References
References, Resources, Citations
-  Fortune Snapshots
- Hoover's Company Records Fa-Fl. (Dec 15, 2011).
-  New York Times
-  Fannie Mae Corporate Investor Page
-  Fannie Mae Corporate About Page
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