It is the nation's largest source of financing for home mortgages, but does not lend money directly to homebuyers. Instead, it buys mortgages issued by banks, credit unions, and other mortgage lenders, and then sells them to investors as mortgage-backed securities. This provides the lenders with the funds needed to issue new mortgages. Today, more than 14 million American families live in homes Fannie Mae has helped to finance in this manner. Congress originally created Fannie Mae in 1938 as part of the Federal Housing Administration.
Raines agrees with the new goals.
Raines was the first OMB director in a generation to balance the federal budget. From 1991 to 1996, he served as Vice Chairman of Fannie Mae. Before joining Lazard Freres, he served from 1977 to 1979 as Associate Director for Economics and Government at OMB, and Assistant Director of the White House Domestic Policy Staff. Raines graduated magna cum laude with a B.A. degree from Harvard College. He received his J.D. degree cum laude from Harvard Law School.