This article focuses on the increasing risk for Fannie Mae as a result of its mission creep. Fannie Mae is a government sponsored enterprise (GSE) which was founded to increase home ownership. The GSE’s role has evolved and become increasingly involved in various aspects of the mortgage industry, increasing its supply of capital and taking on more of the risk associated with mortgages.

In recent years, Fannie Mae has expanded its loan business and has taken on additional risk. This includes purchasing more riskier loans and taking on more of the risks associated with mortgages. These increases have led to more money being placed into the system and more of the mortgage risk being held by Fannie Mae.

The increasing risk has raised some questions about how the GSE is managing its role in the mortgage market. Critics of Fannie Mae’s mission creep are concerned that they are taking on too much risk. They are concerned that the GSE will not be able to handle the risks it is taking on if the housing market experiences a downturn.

In the end, the article suggests that Fannie Mae needs to be careful about how it is managing its role in the mortgage market and that it needs to be aware of its increasing risk exposure. Fannie Mae must weight the benefits and risks of increasing its involvement in the market as it continues to expand its loan business.

You can read this full article at: required)

Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.