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Federal National Mortgage Association or FNMA AKA Fannie Mae

Federal National Mortgage Association or FNMA AKA Fannie Mae

A government-sponsored enterprise that was created in 1938 with a mission to expand the availability of homeownership for low- and middle-income families. Fannie Mae accomplishes this by creating a secondary market for mortgages, which allows lenders to sell their existing mortgage loans to Fannie Mae. This, in turn, provides them with additional funds to originate new mortgages for homebuyers. By purchasing mortgages from lenders, Fannie Mae helps to increase the liquidity of the primary mortgage market, making it easier for borrowers to access affordable home financing. This role in the housing market is essential for promoting homeownership and stabilizing the economy. By providing liquidity to the mortgage market, it allows lenders to offer more affordable interest rates and better terms to potential borrowers. Additionally, as a government-sponsored entity, Fannie Mae is accountable to both the government and the public for its actions, ensuring that it operates in a responsible and transparent manner. Has faced its fair share of challenges in recent years. In 2008, the company was placed under conservatorship due to the subprime mortgage crisis, and since then, it has been working to restore its financial health and reputation. Despite these setbacks, Fannie Mae remains a critical player in the housing market, and its efforts have helped millions of Americans achieve their dream of homeownership.
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