ment, the Federal National Mortgage Association Charter Act of 1954 transformed Fannie Mae into a “mixed ownership corporation,” with the U.S. government FNMA Charter Act of 1954 orits nRial 1938 charter. In 1970 the same prM~ egeswere extended to FHLMC when ft was created. The securfties may be issued The 1954 Act also changed the charter's origi- nal jurisdictional clause authorizing suits by and against Fannie Mae “in any court of law or equity,. State or Federal. 31 May 2019 Fannie Mae and Freddie Mac are chartered by Congress as defined above, GSEs) with charters directing them to facilitate liquidity in the mortgage market Housing Act, not only to encourage improvement in housing
Among other purposes, the Charter Act requires Fannie Mae to “promote access to mortgage credit throughout the Nation (including central cities, rural areas, and underserved areas) by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for residential mortgage financing.” In 1935, lawmakers created the Reconstruction Finance Corporation (15 U.S.C.A. § 601 [1983], repealed by Reorganization Plan of 1957 No. 1 [5 U.S.C.A. § 903 note (1977)]), and in 1938, they added a subsidiary, Fannie Mae (Federal National Mortgage Association Charter Act [12 U.S.C.A. §§ 1716–1723h (1980)]). Fannie Mae's federal charter required it to buy FHA-insured loans from mortgage lenders, thus increasing the supply of mortgage funds available for lending.
The Act supports the housing industry while maintaining the deficit at a necessary minimum by ensuring that income derived from mortgage-related federal programs, such as the FNMA Charter Act, and unused funds from economic stimulus programs, such as the ARRA, are used solely to offset the federal deficit. Fannie Mae Charter Act Freddie Mac was chartered by Congress in 1970 as a private company to likewise help ensure a reliable and affordable supply of mortgage funds throughout the country. Today is a shareholder-owned company that operates under a congressional charter. in the Charter Act, Fannie Mae was rechartered by Congress and authorized to conduct secondary market operations in mortgages insured by FHA or insured or guaranteed by VA, to perform special assistance Fannie Mae completes a full-file quality control review of the loan file, which includes a review of the credit underwriting and eligibility of the borrower, the property (including its value), and the project in which the property is located, if applicable, and determines that the mortgage is acceptable (that is, it is not subject to a repurchase demand). Corporation Act.” (b) It is the purpose of the Federal Home Loan Mortgage Corporation— (1) to provide stability in the secondary market for residential mortgages; (2) to respond appropriately to the private capital market; (3) to provide ongoing assistance to the secondary market for
FNMA Charter Act of 1954 orits nRial 1938 charter. In 1970 the same prM~ egeswere extended to FHLMC when ft was created. The securfties may be issued The 1954 Act also changed the charter's origi- nal jurisdictional clause authorizing suits by and against Fannie Mae “in any court of law or equity,. State or Federal. 31 May 2019 Fannie Mae and Freddie Mac are chartered by Congress as defined above, GSEs) with charters directing them to facilitate liquidity in the mortgage market Housing Act, not only to encourage improvement in housing
2 Apr 2006 These charters bestow a number of rights and responsibilities on the two the purposes of Fannie Mae's and Freddie Mac's charter acts are to: