Fannie Mae created to buy mortgages
Citations (1)
- The Ascent of Money whole source · open book
This market came to life in 1938, when a new Federal National Mortgage Association – nicknamed Fannie Mae – was authorized to issue bonds and use the proceeds to buy mortgages from the local Savings and Loans, which were now restricted by regulation both in terms of geography (they could not lend to borrowers more than fifty miles from their offices) and in terms of the rates they could offer depositors (the so-called Regulation Q, which imposed a low ceiling).
chapter: 5: Safe as Houses