What is Fannie Mae

The Federal National Mortgage Association (FNMA) or Fannie Mae was first chartered by the US government in 1938 to help ensure a reliable and affordable supply of Mortgage funds throughout the country. 

Both Fannie Mae and Freddie Mac buy mortgages from lenders. They perform an important role in the nation's housing finance system. They buy mortgages from lenders, either hold them in their portfolios or package the loans into Mortgage Backed Securities (MBS) that may be sold in the Secondary Market. The cash raised by selling these mortgages to the enterprise is used by lenders to further use the funds for additional lending. 

Related Topics:                 The History of the Mortgage Industry in the United States                What is Fannie Mae and what are its Responsibilities? What are the Limits on closing cost concessions?                What are Conventional/conforming (e.g., Fannie Mae, Freddie Mac) loans?                   What are Fannie Mae/Freddie Mac’s automated underwriting systems?                 What are the Responsibilities of Fannie Mae?                What are Conforming and Non Conforming Loans                Primary and Secondary Mortgage Market                What is a Mortgage Backed Security (MBS) 

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