Federal National Mortgage Association: Performance Since Privatization. (RE-ANNOUNCEMENT of PB85-126761-see notes field for explanation)

摘要

This paper discusses the appropriate role of the Federal National Mortgage Association (FNMA) in the mortgage market as well as issues involved in HUD's regulation of FNMA so as to facilitate the achievement of FNMA's appropriate role. The FNMA was made a private corporation in 1970. As the regulatory agency for FNMA, HUD has been given a role in the proper formulation and implementation of FNMA goals. When initially chartered in 1938 as the National Mortgage Association and later renamed FNMA, the objective was to purchase FHA-insured mortgages from lending institutions, thus making mortgages more liquid. More generally, FNMA was to provide a secondary market for mortgages. The main procedure that FNMA uses in operating in mortgage markets is a competitive auction in which sellers (mainly mortgage bankers) of mortgages make offers at certain mortgage rates for FNMA commitments. FNMA's outstanding characteristic has been its rapid growth since privatization. This has been of some help in its indirect role in the secondary market in that it has yielded the large amount of marketable debt that it has created and which is like issuing marketable mortgage-backed bonds. FNMA's size is of some concern from the perspective of public policy, partly because, while it is not now a very large share of the mortgage market, it may become much larger in the future. FNMA has been most successful in its role as a mortgage dealer, marking mortgages marketable and eliminating regional differences in credit.