Page 430 - FY 2026-2027 Adopted Budget Book

markets in decades. FHFA stated that there principal and interest on mortgage -backed
are no plans to liquidate the company. securities (MBS) issued by approved
lenders. GNMA connects the US housing
FEDERAL NATIONAL MORTGAGE market to capital markets, providing low -
ASSOCIATION (FNMA or Fannie Mae): A cost financing for federal housing programs
U.S. through the Federal Housing Administration
government -sponsored private (FHA), Veterans Affairs (VA), HUD’s Public
corporation whose chief function is to and Indian Housing (PIH), and the
supply funds for home mortgages through Department of Agriculture (USDA)
continuous purchases of mortgages from
lending institutions. On September 7, 2008,
the Federal Housing Finance Agency
(FHFA), announced that Fannie Mae and
Freddie Mac were being placed into
conservatorship of the FHFA. The action
was "one of the most sweeping
government interventions in private
financial markets in de cades". FHFA also
dismissed the firms' chief executive officers
and boards of direct ors, and caused the
issuance to the Treasury new senior
preferred stock and common stock
warrants amounting to 79.9% of each GSE.
FHFA stated that there are no plans to
liquidate the company.

FEDERAL OPEN MARKET COMMITTEE
(FOMC): Consists of seven members of the
Federal Reserve Board and five of the
twelve Federal Reserve Bank Presidents.
The President of the New York Federal
Reserve Bank is a permanent member,
while the other Presidents serve on a
rotating basis. The Committee periodically
meets to set Federal Reserve guidelines
regarding purchases and sales of
Government Securities in the open market
as a means of influencing the volume of
bank credit and money.

FEDERAL RESERVE SYSTEM: The central
bank and monetary authority of the United
States.

GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae):
GNMA
is a federal government corporation that
guarantees the timely payments of

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