federal national

The Federal National Mortgage Association, commonly known as Fannie Mae, is a government-sponsored enterprise (GSE) chartered by the U.S. Congress in 1938 during the Great Depression. Its mission is to provide liquidity, stability, and affordability to the U.S. housing market. Fannie Mae does not originate loans directly to consumers; instead, it purchases and guarantees mortgages from lenders like banks and credit unions, which frees up lenders' capital to make more loans. By packaging these mortgages into mortgage-backed securities (MBS), Fannie Mae facilitates a secondary mortgage market where these securities can be bought and sold by investors.