Fannie Mae and Loan Discrimination

The stock market crash of 1929 served a devastating blow to the national economy. Many people suddenly found themselves out of work as the nation spiraled into The Great Depression of the 1930's. Many Americans were forced to default on their mortgage loans. The Federal Housing Administration (FHA), a wholly owned government corporation, was established under the National Housing Act of 1934. Its primary goals were to provide an adequate home financing system through insurance of mortgages …

…rich corporate culture and sense of obligation to its community. The biggest flaw that we encountered in studying their operations is learning about the amount of federal money went into the company's shareholders and CEOs. True as it may be that the organization contributes a great deal to society, federal money could be better spent and the organization should be held accountable for the benefit of the loan applicants and not just the shareholders.