Fannie Mae and Freddie Mac: the end of federal conservatorship?
- sarahacraddock
- Oct 22
- 2 min read
The future of Fannie Mae and Freddie Mac is a hot topic that stirs much debate. As the housing market evolves, many ask: is the end of federal conservatorship for these government-sponsored enterprises (GSEs) on the horizon? What are the potential implications of their exit from conservatorship? What challenges may this change affect?
Understanding Fannie Mae and Freddie Mac
Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) were established to improve the flow of credit in the housing market. They achieve this by purchasing mortgages from lenders, thus injecting liquidity into the housing finance system. In 2022 alone, Fannie Mae facilitated over $820 billion in mortgage financing, helping countless homebuyers, including first-time homeowners and those with lower incomes, secure loans. (See: FHFA 2022 Annual Housing Activities Report)
The federal conservatorship initiated in 2008 was a response to the financial crisis, which exposed major vulnerabilities within the housing market and the GSEs themselves. By taking control of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency (FHFA) aimed to stabilize the entities and shield taxpayers from further financial exposure. (See: History of Fannie Mae and Freddie Mac Conservatorships)
The Current State of Conservatorship
Today, Fannie Mae and Freddie Mac remain under conservatorship, but they have shown marked improvement in their financial health. Reported profits for both entities have surged, see the History of Fannie Mae and Freddie Mac Conservatorships.
Yet, an important question hangs in the air: can they successfully transition out of conservatorship? This is not a straightforward answer and depends on many factors, including regulatory changes, market conditions, and political dynamics.
According to FHFA:
The new Plan proposes three strategic goals for the Agency:
Responsibly Oversee Fannie Mae and Freddie Mac for the American People;
Supervise the Federal Home Loan Bank System; and
Efficiently Manage U.S. Federal Housing Operations.
Input on the Plan is due by November 5, 2025, and should be submitted via the U.S. Federal Housing website:
The above information has significance for the future of the housing market, but this topic is not the my expertise. I recommend the reader do further research. The links above provide suggested reading.
Sarah Craddock, Broker Associate
Blackwater Realty
C: 251-289-7958
O: 228-344-2087
Comments