In mid-2008 the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), two government-sponsored entities, which had over $5.4 trillion in housing-related debt and securities outstanding, and which dominated the secondary residential mortgage market, began to report significant losses due to the effects of the U.S. housing crisis. The highly leveraged companies would also soon experience liquidity constraints. Due to their significant role in the mortgage market, and the fact that their debt and securities were widely held by many financial institutions and government entities, the U.S. government stepped in to prevent their sudden collapse, which would likely have also caused significant negative impacts to the already weakened financial system and the broader economy.

On September 6, 2008, pursuant the recently enacted Housing and Economic Recovery Act (HERA), the government took control of the two companies placing them into conservatorships and invested $185 billion to keep them solvent. It also purchased their debt and securities. Despite the stabilization of the companies, the mortgage market continued to experience severe contraction aggravated by high interest rates. To lower rates and loosen credit, in December 2009, the Federal Reserve implemented the Large Scale Asset-Purchase Program pursuant to which it purchased over $1 trillion of GSE debt and MBS between 2009 and 2010. By 2012, the companies had returned to solvency but they remain in conservatorship as of June 30, 2019.

Overviews	YPFS Cases
Financial Crisis Inquiry Commission, Final Report Chapter 17: September 2008: The Takeover of Fannie Mae and Freddie Mac (2010) The Rescue of Fannie Mae and Freddie Mac | Frame, W. Scott, Andreas Fuster, Joseph Tracy and James Vickery (2015) FHFA’s Conservatorships of Fannie Mae and Freddie Mac: A Long and Complicated Journey by FHFA Office of Inspector General (2015) FHFA: Conservatorship website	The Rescue of Fannie Mae and Freddie Mac Rescue A: The Conservatorships The Rescue of Fannie Mac and Freddie Mac Rescue B: Senior Preferred Stock Purchase Agreements The Rescue of Fannie Mac and Freddie Mac Rescue C: GSE Credit Facilities The Rescue of Fannie Mac and Freddie Mac Rescue D: The Treasury’s GSE MBS Purchase Program   The Rescue of Fannie Mac and Freddie Mac Rescue E: The HERA The Rescue of Fannie Mac and Freddie Mac Rescue F: The Federal Reserve’s Large Scale Asset Purchase (LSAP) Program  The Rescue of Fannie Mae and Freddie Mac Rescue Z: Overview
Timelines
FCIC Fannie Mae and Freddie Mac Timeline FHFA Timeline Federal Reserve Bank of St. Louis Financial Crisis Timeline
Causes of the GSEs' Problems	Government Interventions
Report to Congress OFHEO (2008) Lehman Brothers Equity Research Report: GSEs: Risks, Rewards, and Imperatives. North America Financial Services Mortgage Finance ( July 7, 2008) Housing and Economic Recovery Act of 2008  Memorandum to James B. Lockhart III from Christopher Dickerson Re: Proposing to Appointment the FHFA as Conservator for Fannie Mae   Memorandum to James B. Lockhart III from Christopher Dickerson Re: Proposing to appointment the FHFA as conservator for Freddie Mac	Housing and Economic Recovery Act of 2008 (§1117) Statement by Secretary Henry M. Paulson, Jr. on the government’s actions Statement of the FHFA Director James B. Lockhart on the Conservatorships FHFA, Questions and Answers on Conservatorship The Appointment of FHFA as Conservator for Fannie Mae and Freddie Mac Statement of James B. Lockhart III before the Senate Committee on Banking, Housing, and Urban Affairs Statement of James B. Lockhart III Before the House Committee on Financial Services Meeting the Challenges of the Financial Crisis Speech| James B. Lockhart III FHFA: Senior Preferred Stock Purchase Agreements Opinion on Federal Obligation to SPSPA (DOJ 09/26/2008) Treasury and Federal Reserve Purchase Programs for GSE and Mortgage-Related Securities Statement of FHFA Acting Director Edward J. DeMarco on Changes to Fannie Mae and Freddie Mac Preferred Stock Purchase Agreements (8/17/2012). August 17, 2012.  Frequently Asked Questions: Treasury Senior Preferred Stock Purchase Agreement Fact Sheet: Treasury Senior Preferred Stock Purchase Agreement FHFA Mortgage Market Note 10-1: U.S. Treasury Support for Fannie Mae and Freddie Mac (January 2010)
Fannie Mae Documents	Freddie Mac Documents
Letter Agreement (December 21, 2017) Third Amendment to Fannie Mae’s Senior Preferred Stock Purchase Agreement with Treasury (August 2012) Second Amendment to Fannie Mae's Senior Preferred Stock Purchase Agreement with Treasury (December 2009) First Amendment to Fannie Mae's Senior Preferred Stock Purchase Agreement with Treasury (May 2009) Fannie Mae's Senior Preferred Stock Purchase Agreement with Treasury (September 2008) Fannie Mae Preferred Stock Certificate	Letter Agreement (December 21, 2017) Third Amendment to Freddie Mac's Senior Preferred Stock Purchase Agreement with Treasury (August 2012) Second Amendment to Freddie Mac's Senior Preferred Stock Purchase Agreement with Treasury (December 2009) First Amendment to Freddie Mac's Senior Preferred Stock Purchase Agreement with Treasury (May 2009) Freddie Mac's Senior Preferred Stock Purchase Agreement with Treasury (September 2008) Freddie Mac Preferred Stock Certificate​​
The GSEs in Conservatorship	The Future of the GSEs
FHFA Website: Conservatorship FHFA, Fact Sheet: Questions and Answers on Conservatorship  Form 8-K, Federal Home Loan Mortgage Corporation. Sec 99.1. (December 23, 2009)   FHFA 2008 Annual Report to Congress FHFA Mortgage Market Note 10-1 (January 20, 2010) FHFA Letter to Congressional Committees Providing an update on the Conservatorships (2010) FHFA-OIG Analysis of the 3rd amendment to the Senior Preferred Stock Purchase Agreements (OIG 03/20/2013)  FHFA’s Initiative to Reduce the Enterprises’ Dominant Position in the Housing Finance System by Raising Gradually Their Guarantee Fees  Effect of the Conservatorship of Fannie Mae and Freddie Mac on Affordable Housing | Winston Sales  After the Deal: Fannie, Freddie, and the Financial Crisis Aftermath | Davidoff Solomon and Zaring (2015) FHFA’s Oversight of the Enterprises’ Implementation of and Compliance with Conservatorship Directives during an 18-Month Period FHFA-Office of Inspector General (2016)	Fannie Mae, Freddie Mac, and the Federal Role in the Secondary Mortgage Market | Congressional Budget Office  GSE Reform: Creating a Sustainable, More Vibrant Secondary Mortgage Market |  Mortgage Bankers Association Restructuring Fannie Mae and Freddie Mac | Testimony of Dr. Susan M. Wachter before the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises The Way Forward: The Committee Republican Plan to Protect Taxpayers by ending the Bailouts of Fannie Mae and Freddie Mac GSEs and the Government’s Role in Housing Finance: Issues for the 113th The Congress | N. Eric Weiss  (09/13/2013)
Shareholder Lawsuits	Legal Analysis
Westhus Reaping Fannie Windfall to Rival Big Short: Mortgages | Jody Shenn (March 10, 2014) New Documents Give Hope to Fannie Shareholders Seeking Redress | Joe Light (July 28, 2017) District Court's 2014 decision to dismiss shareholder complaints alleging the government illegally took Fannie Mae’s and Freddie Mac’s profits.  Bloomberg QuickTake: Fannie Mae and Freddie Mac | Joe Light (April 27, 2018) District Court Decision	After the Deal: Fannie, Freddie, and the Financial Crisis Aftermath | Davidoff Solomon and David T.  Zaring (2015)

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