fannie mae

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a U.S. government-sponsored enterprise (GSE) founded in 1938 during the Great Depression. Its mission is to support the U.S. housing finance system and promote affordable, sustainable homeownership. Fannie Mae does not originate loans directly to consumers but operates in the secondary mortgage market, where it purchases and guarantees mortgages from lenders like banks, credit unions, and other financial institutions. This process provides lenders with fresh capital, allowing them to make more loans available to homebuyers. Since 2008, Fannie Mae has been under the conservatorship of the Federal Housing Finance Agency (FHFA).