In 1987, President Ronald Reagan, President of the Commission for the privatization of government functions that could be shifted to the private sector identify. An agency that was the Commission’s view, the Federal National Mortgage Association, or Fannie Mae. Fannie Mae was a Depression-era creation that was raised with the creation of a secondary market for home loans. With the purchase of qualifying mortgage loans from individual issuer if Fannie Mae this in. .. Read more »

In 1987, President Ronald Reagan, President of the Commission for the privatization of government functions that could be shifted to the private sector identify. An agency that was the Commission’s view, the Federal National Mortgage Association, or Fannie Mae. Fannie Mae was a Depression-era creation that was raised with the creation of a secondary market for home loans. With the purchase of qualifying mortgage loans from individual issuer where these institutions Fannie Mae with funds for the further issue of mortgage, thereby promoting the government’s goal of increasing home ownership. Although lawmakers already partially privatized Fannie Mae in 1954 and again in 1968, the agency in 1987, retained close ties to the federal government, including emergency line of credit from the U.S. Treasury. After discussion, the President of the Commission recommended Fannie Mae to be restructured into a fully private company. Now it was to decide to Congress and the President whether to accept and implement the findings of the Commission.
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from
David A. Moss,
Cole Bolton
Source: Harvard Business School
35 pages.
Release Date: 10 February 2009. Prod #: 709025-PDF-ENG
Fannie Mae: Public or Private? HBR case solution

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