An Assessment of Fannie Mae's Current State Let me briefly provide context on the role Fannie Mae plays in today's market. During uncertain economic times, funds for mortgages tend to dry up as banks and other investors who supply financing flee the market. This was evident at the beginning of the housing downturn when the private label securities market literally vanished after reaching an historic share of the market during the run-up. The departure of liquidity stalls mortgage lending, which in turn negatively impacts construction, home sales, and financing for apartments. As the government has recognized with its very large investments in Fannie Mae and Freddie Mac, a prolonged failure of mortgage lending would have a devastating ripple effect on the nation's economy. Today, Fannie Mae's role in funding the mortgage market has never been more important. We provide funding for more than 40 percent of the single-family market and almost 35 percent of the multifamily market.