How to buy Fannie Mae stock
Fannie Mae is formally known as the Federal National Mortgage Association (FNMA). In the beginning, FNMA was designed to maintain liquidity for government-backed loans from the Federal Housing Administration and the Veterans Administration.
How and where to buy Fannie Mae stock
Shares of Fannie Mae can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Robinhood, SoFi, and eToro.
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Should I buy Fannie Mae stock after the crash?
The 2008 financial crisis was triggered by a crash in the subprime mortgage market. While some, such as Michael Burry, capitalized on the crash, it marred several iconic financial institutions' balance sheets. While some companies died out, billionaire investors stepped in to save some they found attractive. Warren Buffett, for instance, bailed out Goldman Sachs.
The U.S. government also stepped in to save some companies, and committed billions in taxpayer money to Fannie Mae and Freddie Mae. The companies issued preferred stocks and were placed under the Federal Housing Finance Agency's (FHFA) conservatorship.
Starting in 2013, the financial condition of Freddie and Fannie improved, and the two began returning lots of money to the Treasury. Between 2013 and 2016, Fannie and Freddie paid more than $200 billion back to the Treasury, and have paid $300 billion in total to the department. Shareholders claim this is $124 billion more than they would have owed under the initial fixed-interest payments during those four years.
