WHAT MADE FANNIE MAE AND FREDDIE MAC UNIQUE?

WHAT MADE FANNIE MAE AND FREDDIE MAC UNIQUE?

When Fannie Mae shares were sold to the public, it was no longer a government agency. So both Fannie Mae and Freddie Mac were now government-sponsored enterprises. Their debt papers were not formally guaranteed by the government. In fact, there was a declaration in their debt papers that their securities were not obligations of the government, and did not carry government guarantee.

However, the following special privileges were given to Fannie Mae and Freddie Mac because the government believed that their shares of stocks could not be sold without such features. Bear in mind that Fannie Mae with its debt, was already considered too large to handle by just one company.

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