Housing and Urban Development Act

Enacted in 1968, this Act partitioned Fannie Mae into two separate organizations, a government-sponsored corporation (Fannie Mae) and a wholly-owned government corporation, Government National Mortgage Association (“Ginnie Mae”). Ginnie Mae expanded the availability of mortgage funds for moderate-income families using government guaranteed mortgage-backed securities. The Act subjected Fannie Mae to the regulatory control of HUD, which had to approve the issuance of all stocks and other obligations by Fannie Mae and could require it to allocate a portion of its mortgage purchases to low- and moderate-income housing.