Fannie Mae transformed homeownership in the U.S. with the introduction of the 30-year, fixed-rate mortgage loan.
In the early years of the 20th century, homeownership was a cherished dream for many families. Yet without the long-term, fixed rate mortgage most homeowners have today, saving for a down payment was tough, loans were short-term, and large balloon payments awaited when those notes came due.
During the Great Depression, nearly a quarter of the nation’s homeowners lost their homes to foreclosure. Banks simply didn’t have the funds to make mortgage loans. To address the situation, the United States government created Fannie Mae and charged it with the mission it continues to serve today: to provide liquidity, stability, and affordability in the mortgage market.
Fannie Mae helped banks finance a new type of mortgage: the long-term, fixed-rate home loan. The innovative mortgage loan expanded access to affordable homeownership, offered homeowners more certainty about their monthly mortgage payments, and transformed the housing industry.
At Fannie Mae, we continue our mission to help make stable, efficient, and affordable mortgage loans available in the United States. We strive to be America’s most valued housing partner by maintaining responsible risk management for sustainable housing finance and leading with innovative mortgage solutions.
