Fannie Mae

Fannie Mae

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) that has been a publicly traded company since 1968. Founded in 1938 during the Great Depression as part of the New Deal, the corporation was established to expand the secondary mortgage market. It does this by securitizing mortgage loans into mortgage-backed securities (MBS), which allows lenders to reinvest their assets into additional lending. This process effectively increases the number of mortgage lenders by reducing reliance on local savings and loan associations. Its sister organization is the Federal Home Loan Mortgage Corporation (FHLMC), better known as Freddie Mac.

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The Trump administration's May 2025 shutdown of the VA Servicing Purchase (VASP) program, which had let struggling veterans roll missed mortgage payments into a new loan at a low fixed rate, has left thousands facing sharply higher payments. An NPR investigation found more than 15,000 veterans who got loan modifications after VASP ended saw payments rise by at least $150 a month, with over 700 facing increases of $1,000 or more — far higher rates than for conventional Fannie Mae and Freddie Mac loans. Industry groups had warned the VA against ending VASP without a replacement ready. A new Partial Claim Program launched over a year later, but it does not help veterans already stuck in costlier modified loans, and foreclosures on VA loans have since hit a 10-year high.

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VA Mortgage Program Shutdown Leaves Veterans With Higher Payments

VA Mortgage Program Shutdown Leaves Veterans With Higher Payments

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