The primary function of Fannie Mae and Freddie Mac is to provide liquidity to the nation’s mortgage finance system. On the fourth anniversary of their conservatorship, here are seven things you need to know about the two mortgage giants. Still, few Americans understand what Fannie and Freddie actually do for homeowners, what part they played in the recent housing crisis, or what role they’ll have in the mortgage market of the future. Since then, the two companies have required roughly $150 billion in taxpayer support to stay solvent, while the government has kept the housing market afloat by backing more than 95 percent of all home loans made in the United States.įannie and Freddie remain two of the largest financial institutions in the world, responsible for a combined $5 trillion in mortgage assets. Exactly four years ago, during the early days of the financial crisis, the federal government took control of mortgage financiers Fannie Mae and Freddie Mac through a legal process called conservatorship.
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