Which entity was created first?

The correct answer is that the FHA (Federal Housing Administration) was created first. The FHA was established in 1934 as part of the National Housing Act, primarily to stimulate the housing market during the Great Depression by providing mortgage insurance to protect lenders against borrower defaults. This was crucial in making home financing more accessible.

Fannie Mae (the Federal National Mortgage Association) followed in 1938 to create a secondary market for mortgages, which helped stabilize and increase the availability of mortgage credit. Freddie Mac (the Federal Home Loan Mortgage Corporation) was created later in 1970 to further enhance this liquidity in the mortgage market. The FHFA (Federal Housing Finance Agency) was established even more recently, in 2008, to oversee Fannie Mae and Freddie Mac during the financial crisis.

Thus, in the historical context of housing finance entities, the FHA holds the distinction of being the first, laying the foundation for subsequent organizations dedicated to mortgage financing and stability within the housing market.