The Federal National Mortgage Association (FNMA), and most commonly known as, Fannie Mae, was established in 1938 and plays an important role in the nation’s housing system. The company’s main responsibility is to serve the people who live in America, which involves purchasing loans and giving the mortgage lender cash in return (www.knowledge.wharton). Their mission statement says, “Fannie Mae serves the people who house America. We are a leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets at all times. Our Financing makes sustainable homeownership and workforce rental housing a reality for millions of Americans” (fanniemae.com).
Fannie Mae supports the mortgage lenders in two different phrases, which includes “credit guarantee” and “portfolio investment. The “credit guarantee” business takes residential mortgages from banks and mortgage companies, and issues securities to generate cash flow back into the banks and
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The country needed a stable source of funding for housing that was always available and in all markets. Congress introduced Fannie Mae which allowed the homeowner access to a long-term, fixed rate loan and the ability to refinance. As soldiers returned home from World War II and bought houses for their families, the economy started to grow. Towards the mid 1930’s, Congress altered Fannie Mae from a government agency to a mixed ownership corporation. By 1968, Fannie Mae was privately owned and was funded through stocks and bonds rather than by the government (fanniemae.com). Charles Duhigg, a reporter for the New York Times said, “They’re [Fannie Mae and Freddie Mac] enormous. Every institutional investor owns either Fannie and Freddie shares, or more importantly, Fannie and Freddie debt.” Eventually, the economic crisis smacked Fannie Mae and wreaked havoc on the company
State Farm was founded by farmer, George Jacob "G.J." Mecherle in Bloomington, Illinois. Mercherle didn’t think it was fair that families and other farmers that lived in rural communities paid the same auto insurance rates as those that lived in Chicago. He wanted to establish an “honest insurance company that provided rates related to the risk” (State Farm, About Us). In 1922, after the company opened its doors, a new claim was made which established State Farm’s promise “to be there when the unexpected happens” (State Farm, About Us). According to the State Farm website, the company handles nearly 35,000 claims per day.
Likewise, Andra C. Grant says, “Between 1929 and 1932, home prices in New York fell an average of 50% and the unemployment rate rose substantially. As a result, many residential mortgages were at serious risk of foreclosure. Lenders in the 1930s faced substantial incentives to avoid foreclosure” (Grant). Most Americans couldn’t afford to buy a home prior to this downfall. The down payment was 80% upfront, and people only had five to seven years to pay the remaining amount (“How Did the FHA Help End the Great Depression?”). However, in 1934 a reform called the Federal Housing Administration uprooted. (“How Did the FHA Help End the Great Depression?”). It helped recreate the failing housing market. It is known for lowering down payments, creating a longer loan period, and introducing the idea of paying interest over time and loan standards (“How Did the FHA Help End the Great Depression?”). Through solving the housing problems, the Federal Housing Administration helped get America back on its
during 1929 the stock market was the best way to make money, most of american population invested in the stock market, and back then the government assured people it was the best time to buy houses since the stock market was booming. Many people bought houses, but then stock market crashed in 1929, and it happened overnight, and it didn't end there either. After it crashed it continued to decrease due to investors still attempting to trade, causing the stock market to go further into a depression. After the crash, wall street went into a panic and continued to trade more, wiping out 13 million clients (A&E networks). Some people were able to withdraw their money from the stock market before things got too bad, but the majority of american population lost their money and went bankrupt. Many people blamed president hoover for the depression because he refused to help and believed the government should not be responsible for the stock market crash. Since the majority of the population went bankrupt, they were evicted of their homes due to no money able to pay bills. People came home from work to find their houses locked and their belongings outside, they were forced to live on the streets and live in tent camps. Because of president hoover's wide unpopularity, people began calling homeless tent camps “Hoovervilles” and an...
This impacted the physical, geographical, and economic landscape of our country. By the end of 1947, the Veterans Administration guaranteed well over one million home, business, and farm loans in which the government co-signed about half ("GI BILL—1952", 1952) .
There was too much OPM (“Other People's Money”) that tripled from 1921 to 1940. Decline in value against fixed debt was large, but less severe than in Great Recession.
"America's Great Depression and Roosevelt's New Deal."DPLA. Digital Public Library of America. Web. 20 Nov 2013. .
"Home Owners Loan Corporation." Next New Deal. Roosevelt Institute, 2014. Web. 16 Mar. 2014. .
After a generation of portfolio managers and investors profiting from decades of favorable returns on stocks, they believed the modern economy was impervious to major calamities (“Rethinking” 20). As inflation rates fell from record highs in the late 1970s and early 1980s to the record lows that they are today, interest rates followed, enabling Americans to borrow more money from lenders which, in turn, increased housing prices to all-time highs (“Rethinking” 21).
I am familiar with service. For me, service has only extended to my peers and my community; however, I hope to serve the nation and all nations in the future.
Spirits in the United States were high after World War II. The triumph over Germany brought with it a sense of accomplishment which made the country feel as if it had the ability to achieve anything and could overcome all odds. Unfortunately for soldiers coming home high spirits did not guard them from the shortage of affordable housing. In 1946, the head of the Office of Price Administration estimated that over 1.4 million houses were needed to house returning veterans and home front workers. Even at the highest rate of construction it would take twelve years to house everyone properly and affordably. The Federal Government realized the problems the cities were facing and decided that it would be best for local governments to mandate the situation along with federal funding. In order for local government to accomplish this task the Housing Act of 1949 was passed.
...bt as a percentage of personal income doubled from 4.2 per cent in 1918-20 to more than 9 per cent in 1929” (The 1920s Credit Bubble, 1). People began spending so much money without thinking that the credit they were spending on luxurious fancy items. All these items that were bought did have to be paid off some day.
government in 1938 to help ensure a reliable and affordable supply of mortgage funds throughout the country. Today it is a shareholder-owned company that operates under a congressional charter. Americans who had hoped to retired was unable to do so because unscrupulous investors ripped off their pension funds. Wall Street became another chapter in U.S. History. Bankers knew that some of the borrowers, in the long run would not afford to keep their properties or remain in business.
Do you know what it’s like to live in a cardboard home, starve, and raise a family in poverty? Unfortunately, most Americans in the 1930s went through this on a day-to-day basis. In 1929 the stock market crashed. Many people lost their life savings; they invested everything they owned in a failing stock market. The country was falling, everyone needed strong leadership and help from the government.
Dole Food company is an international distributor of fruits and vegetables founded in 1851. They have also broadened their company into the nutrition research and education field. In Dole’s mission statement Dole is stating that as a corporation it holds the highest standards in it’s products, research, and education while still upholding high ethical conduct in its business. “Dole Food Company, Inc. is committed to supplying the consumer and our customers with the finest, high-quality products and to leading the industry in nutrition research and education. Dole supports these goals with a corporate philosophy of adhering to the highest ethical conduct in all its business dealings, treatment of its employees, and social and environmental policies.”(Dole). Dole has come a long way since it’s humble beginning in 1851. In 2010 doles recorded revenue was $6.9 billion dollars making it the biggest international distributor of fruits and vegetables. One of the major difficulties in a corporation like dole is to uphold
MISSION STATEMENT Mission statements are used by organizations to explain their existence and communicate its intentions. .A company’s goals and identity run on its mission statement, thus having to determine the purpose of the mission statement for that organization and its significance.