Would the model mean that Fannie Mae could be labeled an “honest” company? Why or why not?

     Fannie Mae, a company, created back in 1938 to increase the ability of citizens becoming homeowners.  Fannie Mae received rave reviews as one of the United States most ethical companies during the years from 2000 to 2002.  The organization even made profits amounting to $24 billion dollars in the year 2004.  Fannie Mae had been acknowledged as one of the best places to work for working mothers and minorities and even made the Fortune 500 list.  However, those praises began to fizzle out in the year of 2005.
   
     Alan Greenspan tried to advise individuals that there were problems taking place within the walls of the Fannie Mae organization.  In a court battle, Mr. Greenspan ended up testifying against them.  He was quoted as saying that "The Federal Reserve Board has been unable to find any credible purpose for the huge balance sheets built by Fannie and Freddie other than profit" (Jennings, 2012, p. 123).
     Frannie Mae and Freddie Mac financed more than half of the mortgages in the United States.  They were providing loans to borrowers who were under qualified financially, no credit or low credit and no down payment.  With so many loans written to buyers who do not meet today's standards of lending, the housing market took a horrible downfall. People were losing their homes all over the country do to them being locked into unaffordable interest rates and balloon payments (Hoang & Martin, 2012).  With so many homes going into foreclosure, Fannie Mae began to experience some very troubled waters.  The minds that be at the organization could not account for the irresponsible decisions they made with the handing out of so many loans to so many people other than getting that initial profit.
   
     Fannie Mae did not use Jennings and Entine's eight question to ensure they were acting in an ethical manner.  With the way, the company conducted business it is safe to say that the Jennings model would not identify Fannie Mae as an honest company.  Because of their decision to think of only profits many individuals lost their homes, had to file bankruptcy, and emotional stress and strain (Hoang & Martin, 2012).  Proper policies were not in place, and red flags were ignored which lead this company to put our country into a bigger financial bind than they were already in.

     Fannie Mae has since recovered, and the former powers that be have been replaced with individuals who are trying to lead the company into a more positive direction and rebuild its reputation as a business you can trust.