Fannie Mae

Fannie Mae, officially known as the Federal National Mortgage Association, is a government-sponsored enterprise in the United States that helps ensure more people can buy homes. It does this by buying mortgages from lenders, providing them with cash to offer more loans. Fannie Mae then pools these mortgages to sell as securities to investors. This process boosts the availability of funding for new mortgages, ultimately stabilizing the housing market and making homeownership more accessible. It plays a crucial role in the U.S. housing finance system, especially during economic downturns.