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. 

About the Author: Ahsan Bashir is an experienced Tax Consultant based in Irving, Texas, with over 25 years of expertise spanning Taxation, Accounting, Business Lending and Mortgage, Risk Management, Business Insurance, and Business Consulting. Through his firm, Z-Tax & Accounting, he provides comprehensive financial services including Individual and Business Tax Preparation, Bookkeeping, Payroll Processing, and Business Consulting. As an Enrolled Agent authorized to practice before the Internal Revenue Service (IRS), and an IRS Certifying Acceptance Agent (CAA), Ahsan Bashir delivers trusted, professional solutions tailored to the unique needs of both individuals and businesses. 

NMLS: 1965714, NPN: 7702637, PTIN: P01280330, TX Online SOS Notary ID: 126282896

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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