What is the nature of the relationship between Fannie Mae, Freddie Mac and Ginnie Mae and the US Government?
The prospectuses for all of Fannie Mae’s and Freddie Mac’s debt offerings clearly state that the U.S. government does not back the company’s debt instruments. Fannie Mae and Freddie Mac are not agencies of the Federal or any state government, nor do they receive any subsidy or appropriation from the government. Their securities are not backed by the full faith and credit of the United States government. Although born as government agencies, Fannie Mae and Freddie Mac are federally chartered corporations that are shareholder-owned, whose stock is traded on the New York Stock Exchange.
