Fannie Mae is a commercial entity whose ownership was controlled or associated by the shareholder. It was developed in 1938 by the federal government. The main strategy is to encourage people to invest in the real estate market. The company wants to ensure the stability of the mortgage and ensure that customers approach them to buy. It also introduced a loan that could help them invest initially. Over the past decade, the profit margin of the mortgage portfolio has reached $895 billion. They also partnered with many small businesses and invested in Barne's. There was an allegation regarding Fannie Mae's investments and ideas in the Wall Street Journal. However, no action has been taken by the superiors regarding this issue. Later in 2003, CEO Daniel Muddi talked to employees about it, but he failed to resolve it. Say no to plagiarism. Get a custom essay on “Why Violent Video Games Should Not Be Banned”?Get an original essay Another major problem is the accounting in Fannie Mae's policies that caused them to invest, purchase and hold mortgages developed by the CFO without appropriate analyses. on future threats that could endanger the reputation and money of companies. They came up with a philosophy to get people to invest in the mortgage market. They introduced an “arbitrary volatility” computer model which resulted in a different methodology to understand and implement. Much higher management couldn't understand what they were doing with the profits. They have fixed rates and interest when passed to customers, but ultimately it differs and poses a problem. The decisions made by Mr. Howard, the financial director, mainly have two strategies in the plan. The first is to set performance objectives during this exercise and then analyze them to achieve them. But in 1998, he changed the way he conducted operations by setting EPS targets with the company's expense sheets, which led to unstable profits. In return, they received a warning about their accounting that they need to report on internal controls and strategies. All of these issues raised a question about the ethical behavior of Fannie's agents. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get a Custom Essay Later, the New York prosecutor had to resign due to the truths revealed. the Fannie Mae scandal. They have a policy of transferring 40 million dollars of revenue into radian insurance, knowing all this, no one dares to act or question them, everything went according to their plan. Later, due to unethical employee behavior and Fannie's policies, the company shifted to more mortgages and an internal revenue crisis that caused it to pay $200 billion to the federal government to restore Fannie. Due to overly risky mortgages and lack of proper guidelines to rebuild the business..