What Trump's Mortgage Move Means Now

## Overview Fannie Mae, formally known as the Federal National Mortgage Association (FNMA), is a cornerstone of the U.S. housing finance system, operating as a government-sponsored enterprise (GSE) since its founding in 1938 during the Great Depression[2][5]. Established under the New Deal to expand the secondary mortgage market, Fannie Mae’s mission is to ensure a reliable and affordable supply of mortgage funds nationwide, supporting both homeownership and rental housing[2][5][8]. ## Core Functions Fannie Mae purchases residential mortgages from approved lenders, bundles them into mortgage-backed securities (MBS), and sells these securities to global investors[1][4]. By doing so, it injects liquidity into the mortgage market, allowing lenders to offer more loans at stable rates[1][4][5]. The organization also guarantees the timely payment of principal and interest on these securities, attracting a diverse investor base and helping to lower borrowing costs for American families[1][4]. In the first half of 2025 alone, Fannie Mae provided $178 billion in funding to the housing market and helped 668,000 households buy, refinance, or rent homes[4]. ## History and Evolution Originally a federal agency, Fannie Mae became a publicly traded, shareholder-owned company in 1968, though it retains a congressional charter and operates under federal oversight[2][5]. Its “sibling” organization, Freddie Mac, was created in 1970 to further support the mortgage market[5]. Over the decades, Fannie Mae has played a pivotal role in standardizing mortgage underwriting, pioneering automated underwriting systems (such as Desktop Underwriter), and expanding access to credit for underserved communities[4]. ## Current Status and Key Metrics As of mid-2025, Fannie Mae remains one of the largest financial institutions in the world, with over $4.3 trillion in total assets and a net worth of $101.6 billion[

Freddie Mac, officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise (GSE) established in 1970 to enhance liquidity, stability, affordability, and equity in the U.S. housing market. It operates by purchasing mortgages from lenders, pooling them, and issuing mortgage-backed securities (MBS) to investors, thus facilitating the flow of capital into housing finance and making homeownership and rental housing more accessible to millions of Americans[1][2]. Since its inception, Freddie Mac has helped tens of millions of families buy, rent, or keep their homes, especially supporting middle- and low-income households. In recent years, it has maintained a significant presence in the single-family and multifamily housing markets. For instance, in the second quarter of 2025, Freddie Mac’s mortgage portfolio stood at $3.6 trillion, providing more than $100 billion in liquidity to the housing finance system and assisting over 360,000 families, including more than 100,000 first-time homebuyers[1][3]. Financially, Freddie Mac reported net income of $2.4 billion for Q2 2025 and $2.8 billion for Q1 2025, reflecting strong net interest income driven by mortgage portfolio growth and efficient funding costs, despite some challenges from credit loss provisions and lower non-interest income in multifamily sectors[1][4][6]. Its net worth increased to $65 billion by mid-2025, illustrating robust capital strength and operational resilience[3][6]. Freddie Mac plays a key role in financing affordable rental housing, with federal regulators setting multifamily loan purchase caps to balance market support and private capital participation. For 2025, the cap was set at $73 billion, with a mission-driven minimum of 50%, emphasizing support for affordable and workforce housing[7]. Notably, Freddie Mac remains under federal conservatorship since the 2008 financial crisis but has consistently returned to profitability and capital growth. There i