What Happened to Federal National Mortgage Association (Fannie Mae) Stock?
Fannie Mae stock has been under federal conservatorship since the 2008 financial crisis, with its common and preferred shares trading on over-the-counter (OTC) markets. Despite returning to profitability and repaying its bailout, the company's future remains tied to government policy and ongoing legal challenges regarding its conservatorship and the 'Net Worth Sweep' of its profits. As of March 2026, discussions about its reprivatization continue amidst market volatility and new initiatives like crypto-backed mortgages.
Quick Answer
Fannie Mae stock (FNMA) has been trading on over-the-counter (OTC) markets since being placed into federal conservatorship by the Federal Housing Finance Agency (FHFA) in September 2008. The government's 'Net Worth Sweep,' which directed nearly all profits to the U.S. Treasury, was halted in 2019, allowing Fannie Mae to retain earnings. As of March 2026, the company remains in conservatorship, with its common stock trading around $4.77, and investors like Michael Burry predicting a potential IPO no earlier than 2027.
📊Key Facts
📅Complete Timeline17 events
Fannie Mae Created
The Federal National Mortgage Association (Fannie Mae) is created by the U.S. Congress as part of Franklin D. Roosevelt's New Deal to provide liquidity to the mortgage market.
Becomes Private Corporation
Fannie Mae is rechartered as a private, shareholder-owned corporation, removed from the federal budget, and begins funding operations through stock and bond markets.
Housing and Economic Recovery Act (HERA) Signed
President George W. Bush signs HERA, establishing the FHFA and expanding its regulatory authority over Fannie Mae and Freddie Mac, granting the Treasury authority to advance funds.
Fannie Mae Enters Conservatorship
Amidst the financial crisis, Fannie Mae is placed into conservatorship by the FHFA to stabilize the housing market and prevent its collapse, with the consent of its board of directors.
Treasury Provides Financial Support
The U.S. Treasury announces financial support through Senior Preferred Stock Purchase Agreements (SPSPAs), including a $1 billion senior preferred stock investment and warrants for a 79.9% ownership stake.
Delisted from NYSE
Fannie Mae's common and preferred shares are delisted from the New York Stock Exchange (NYSE) and begin trading on the over-the-counter (OTC) markets.
Net Worth Sweep Implemented
The Treasury Department modifies the SPSPAs, implementing the 'Net Worth Sweep' which directs nearly all of Fannie Mae's quarterly profits to the Treasury, preventing capital rebuilding.
Bailout Funds Repaid
Fannie Mae repays all funds it received from the government bailout, having returned to profitability in 2012.
Net Worth Sweep Ends
The FHFA and U.S. Treasury end the Net Worth Sweep, allowing Fannie Mae and Freddie Mac to retain earnings and begin rebuilding their capital.
FHFA Nominee States Conservatorships Shouldn't Be Indefinite
Bill Pulte, during his Senate hearing for FHFA Director, states that the conservatorships of Fannie Mae and Freddie Mac should not be indefinite, but any exit must be carefully planned.
Government Plans to Sell Up to 5% of Shares
FHFA Director Bill Pulte announces that Fannie Mae and Freddie Mac will remain in conservatorship, but the government intends to sell up to 5% of their shares.
Fannie Mae Reports 2025 Financial Results
Fannie Mae reports net income of $3.5 billion for the fourth quarter of 2025 and $14.4 billion for the full-year 2025.
NY Court Rules Against Fannie Mae in Foreclosure
New York's Appellate Division rules against Fannie Mae in a mortgage foreclosure action, stating the lender waited too long to file, citing a state law enacted in late 2022.
Fannie Mae Updates Condo Lending Guidelines
Fannie Mae updates its lending guidelines for condominiums, increasing the minimum reserve funding requirement to 15% but easing stringent insurance requirements.
Investors Urge End to Conservatorship
Billionaire investors Bill Ackman and Michael Burry publicly urge President Donald Trump to end the government conservatorship of Fannie Mae and Freddie Mac, criticizing the 'Net Worth Sweep'.
Fannie Mae to Accept Crypto-Backed Mortgages
Fannie Mae announces it will begin accepting crypto-backed mortgages, partnering with Coinbase and Better Home & Finance, a move that could boost originations but introduces new risks.
Michael Burry Predicts 2027 IPO 'At Best'
Famed investor Michael Burry states that IPOs for Fannie Mae and Freddie Mac are a '2027 proposition at best,' citing concerns about inflation and the housing market.
🔍Deep Dive Analysis
The story of Fannie Mae stock is inextricably linked to the 2008 financial crisis and the subsequent government intervention. Established in 1938 and privatized in 1968, Fannie Mae (Federal National Mortgage Association) plays a crucial role in the U.S. housing finance system by purchasing mortgages from lenders, pooling them into mortgage-backed securities (MBS), and guaranteeing their payment to investors.
The subprime mortgage crisis led to a substantial deterioration in the housing markets, severely damaging Fannie Mae's financial condition. On September 6, 2008, with the consent of its board, the Federal Housing Finance Agency (FHFA) placed Fannie Mae into conservatorship to stabilize the mortgage market and prevent its collapse. The U.S. Department of the Treasury provided significant financial support through Senior Preferred Stock Purchase Agreements (SPSPAs), which included warrants for a 79.9% ownership stake.
Initially, the conservatorship focused on reducing losses and stabilizing the market. Fannie Mae returned to profitability in 2012, and by 2014, it had repaid all funds received from the bailout. However, in August 2012, the Treasury implemented the 'Net Worth Sweep,' an amendment to the SPSPAs that directed nearly all of Fannie Mae's quarterly profits to the Treasury, effectively preventing the company from rebuilding its capital. This move became a major point of contention for shareholders, who filed numerous lawsuits challenging its legality.
A significant turning point occurred in September 2019 when the Net Worth Sweep was terminated, allowing Fannie Mae and Freddie Mac to retain their earnings and begin rebuilding capital. Despite this, the companies have remained in conservatorship, and their common and preferred stocks continue to trade on over-the-counter (OTC) markets, having been delisted from the NYSE in 2010.
As of March 2026, Fannie Mae remains under federal control. The debate over its future and potential reprivatization is ongoing, with figures like investor Bill Ackman and Michael Burry advocating for an end to the conservatorship and criticizing the past profit sweep as 'outright theft.' FHFA Director Bill Pulte has indicated that while conservatorships should not be indefinite, any exit must be carefully planned. Recent developments in March 2026 include Fannie Mae's announcement to accept crypto-backed mortgages and updates to its condo lending guidelines. The company reported net income of $3.5 billion for Q4 2025 and $14.4 billion for full-year 2025. Michael Burry, known for 'The Big Short,' has tempered expectations for an immediate IPO, suggesting it could happen in 2027 'at best' due to various market and political factors.
What If...?
Explore alternate histories. What if Federal National Mortgage Association (Fannie Mae) Stock made different choices?