Fannie Mae and Freddie Mac - Where did those names come from?

Prior to mid this year, the names Fannie Mae and Freddie Mac were largely unknown outside the US. They are now household names throughout the world. Have you ever wondered where such bizarre names for such important organisations came from?

The names are semi-acronyms and name twists for their original government organisation names:

	Federal National Mortgage Association (FNMA - Fannie Mae)
	Federal Home Loan Mortgage Corporation (FhmMC - Freddie Mac)

Fannie Mae was started in 1938, in the wake of the Great Depression, to help jump start the US housing market. Fannie Mae bought mortgages from lenders, freeing up capital that could go to other borrowers. This ushered in a new era of US home ownership.

Fannie Mae grew so large, that eventually Freddie Mac was started in 1970 to prevent Fannie Mae from functioning as a monopoly.

Published : 14 October 2008