The debate over how to reform Fannie Mae and Freddie Mac, so-called government-sponsored enterprises (GSEs), is heating up again. On Feb. 9, 2011 Congress launched its efforts to overhaul Fannie and Freddie with hearings; the same week the Department of Housing and Urban Development (HUD) and the Treasury Department released recommendations regarding GSE reform in the wake of the financial crisis.

Read Obama Adminstration report >

NAR Issue Analysis: Reforming America's Housing Finance Market > (PDF: 231K)

These are only proposals and the debate will likely continue for months. NAR is analyzing early reports on the proposals and will provide a complete assessment of the administration’s proposals and other major proposals as they’re released and will keep you and your members informed.

Key Points Secondary Mortgage Market Reform >

Latest News

(Jan. 17) Lawmakers Expected to Look at Fannie, Freddie Reform in Spring
(Jan. 17) Federal Reserve Releases Housing White Paper
(Jan. 6) FHFA Releases Statement on GSE Guarantee Fee Increase
(Dec. 27) NAR Submits Comments On Loan Servicing Compensation
(Dec.9) NAR Applauds Mortgage Industry Reform Bill
(Dec. 7) REALTORS® Urge Comprehensive Reform of Mortgage Finance System
(Nov. 22) Freddie Mac Announces 2012 Loan Limits
(Nov. 18) Freddie Mac Amends Mandatory Short Sale Affidavit Policy

GSE Reform Webinar Recording Available  
NOTE: Due to a technical problem, you will not see the slides advance for the first 5 minutes of the presentation. After that, the slides will advance as prepared. If you would like to view those first slides separately, you can access the slides here.

Conforming Loan Limits

On Nov. 17, 2011. the U.S. Congress kept the loan limits for Fannie Mae and Freddie Mac-backed mortgages, which had been previously enacted on Oct.1, 2011, at 115 percent of local area median home prices, up to $625,500, as part of H.R. 2112, the so-called minibus conference report combining three annual spending bills with another stopgap funding measure for the rest of the federal government. NAR fought proposals to roll the Fannie and Freddie conforming loan limits back to a single $417,000 nationwide standard. This proposal would have reduced loan limits in 124 counties in 21 states.
Economic Indicators >
Find the loan limits for your area (FHFA.gov) >

GSEs Conservatorship

On September 7, 2008, Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs) into conservatorship. FHFA explained it took this action “to help restore confidence in Fannie Mae and Freddie Mac, enhance their capacity to fulfill their [housing] mission, and mitigate the systemic risk that has contributed directly to the instability in the current market.” Now under debate is the future structure of Fannie Mae and Freddie Mac.
Read more >

Fannie Mae and Freddie Mac's New Incentives for Homebuyers

In September, 2010, Fannie Mae and Freddie Mac announced new incentives for homebuyers to purchase foreclosed properties. Both initiatives, Fannie Mae's special offer through homepath.com and Freddie Mac's homesteps.com, aim to stabilize communities and foster affordable homeownership. Visit both sites listed below for more detailed information.
Homepath.com Special Offers >
Homesteps.com > 

Making Home Affordable Program

On February 18, 2009, President Obama announced his Making Home Affordable Program, designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages.

For more detailed information, visit www.makinghomeaffordable.gov/.

Fannie Mae E-News for Real Estate Professionals

Fannie Mae has set up an electronic newsletter targeted to real estate professionals.
Subscribe to start receiving the newsletter >