Any consumer that may have gone in for a mortgage has probably heard about the Fannie Mae program. It is designed to help people reach the American dream of owning their own home. Fannie Mae was originally started as part of the New Deal package and was the first corporation in to the secondary mortgage industry.

On the surface the Fannie Mae Corporation may not seem so bad. In fact, it could be seen as something positive because it is helping more people get into the real estate market and therefore stimulating the economy. But it is the things you don't know about Fannie Mae that will make your skin crawl.

Fannie Mae was originally a government program, but was made a private corporation in then 1960's and is no traded on the stock market. Unlike all other corporations, Fannie Mae is not regulated by the SEC. Up until a few years ago (when it voluntarily began complying) no one could see its books. Even after seeing the books, no one understands the accounting.

Not only is the Fannie Mae the largest secondary mortgage company in the industry, but it is also backed by the United States government (figuratively if not literally). This means that WHEN it runs into trouble, its share holders will be looking to the tax payer funded government to bail it out.

If you weren't already worried about the real estate market then finding out about Fannie Mae should get you there.