Federal National Mortgage Association Is it time to get rid of Fannie Mae? Congressman Gary Peters thinks so. By Steve Carmody • May 13, 2011 Steve Carmody / Michigan Radio Michigan Congressman Gary Peters is proposing doing away with the federal home mortgage financing system. Fannie Mae and Freddie Mac became the backbone of the nation’s mortgage system in the past decade. Fannie and Freddie played a critical role in the housing market collapse.