Fannie Mae

Fannie Mae, officially known as the Federal National Mortgage Association, is a government-sponsored enterprise that plays a critical role in the American housing market. Established in 1938, Fannie Mae operates as a secondary mortgage lender, purchasing mortgages from banks and other financial institutions. By buying these loans, Fannie Mae helps to provide liquidity to the mortgage market, enabling banks to lend more money to homebuyers. Additionally, Fannie Mae helps to stabilize the housing market by providing financial stability and preventing sharp fluctuations in mortgage interest rates. Through its efforts, Fannie Mae helps to make homeownership more accessible and affordable for millions of Americans.