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Va veterans administration now the department of

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VA: Veteran’s Administration (now the Department of Veterans Affairs)
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141 Time Line of U.S. Housing Finance Milestones Year/Act Critical Reform or Event for Housing Finance 1932: Federal Home Loan Bank (FHLB) Act Creation of an early government-sponsored enterprise (GSE): a system of 12 FHLB’s to borrow at low rates in markets and lend to mortgage-lenders “New Deal”: 1933 Home Owners Loan Act (HOLA) and 1934 National Housing Act (NHA) Creation of the Federal Housing Administration (FHA) that offered mortgage insurance to lenders on qualified mortgages 1938 Creation of the National Mortgage Association (NMA) of Washington, which changed its name to the Federal National Mortgage Association (FNMA) – “Fannie Mae”, authorized to borrow in capital markets and buy FHA-insured mortgages 1944: The Servicemen’s Readjustment Act (“GI Bill of Rights”) Authorized the Veterans Administration (VA) to offer mortgage insurance (similar to FHA’s) to veterans 1948 Fannie Mae gained the authority to buy the VA-insured mortgages 1954: The Federal National Mortgage Association Charter Act of 1954 (a part of the Housing Act of 1954) Clarified Fannie Mae’s status as a government agency, stipulated that it was exempt from state and local income taxes, provided for the Federal Reserve Banks to perform various services for Fannie Mae, and specified that Fannie Mae was to provide “special assistance” for certain kinds of mortgages, a precursor to the “mission” regulation of 1990s and 2000s 1968: The Housing and Urban Development (HUD) Act Converted Fannie Mae into a private company, with shares listed on the New York Stock Exchange, HUD retained some regulatory powers over Fannie Mae, and the President of the United States continued to have powers to appoint five of Fannie Mae’s board members 1968-1970: HUD Act Creation of the Government National Mortgage Association (GNMA, or “Ginnie Mae”) within HUD as an agency that would securitize FHA- and VA-insured mortgages; the first Ginnie Mae mortgage-backed securities (MBS) were issued in 1970 1970: The Emergency Home Finance Act Creation of the Federal Home Loan Mortgage Corporation ( “Freddie Mac”), owned by the FHLB system, to buy and securitize mortgages from the S&Ls; Freddie Mac’s first MBS was issued in 1971 1970-1980: HUD and the Federal Home Loan Bank Board Fannie Mae authorized to purchase mortgages that were not insured by FHA or VA; both Fannie Mae and Freddie Mac restricted in size
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142 of mortgages they could purchase for holding or securitizing; “conforming loan limits” progressively revised upward over time 1980s: The Secondary Mortgage Market Enhancement Act of 1984 The maturity mismatch of the S&L industry and the high interest rate environment of the late 1970s and early 1980s led the “President’s Commission on Housing” in 1982, to call for deregulation of mortgage banking and increased role for capital markets in secondary market for mortgages 1989: The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) Fundamentally established Fannie Mae and
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