Fannie Mae: Public or Private Harvard Case Solution & Analysis

In 1987, President Ronald Reagan established the Presidential Commission on Privatization identify federal government functions, which can be shifted to the private sector. One agency, which the Commission considered was the Federal National Mortgage Association, or Fannie Mae. Fannie Mae was the creation of the Great Depression, which was charged with the creation of a secondary mortgage market. By purchasing qualifying mortgages on individual issuers home loan, Fannie Mae provided that the funds to continue the institution of mortgage loans, thus contributing to the government's goal of increased homeownership. Although lawmakers are already partially privatized Fannie Mae in 1954 and again in 1968, the agency in 1987, still maintained close relations with the federal government, including the emergency line of credit from the U.S. Treasury. After discussion, the committee recommended that the presidential Fannie Mae be converted into a fully private firms. Now it was up to Congress and the president to decide whether to adopt and implement the findings of the commission. "Hide
by David Moss, Cole Bolton Source: Harvard Business School 35 pages. Publication Date: February 10, 2009. Prod. #: 709025-PDF-ENG

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