Federal National Mortgage Association

The Federal National Mortgage Association, commonly known as Fannie Mae, is a government-sponsored enterprise in the United States that helps promote homeownership. It does this by buying mortgage loans from lenders, which provides lenders with fresh capital to issue more loans. Fannie Mae then bundles these loans into securities, which it sells to investors. This process enhances the availability and affordability of mortgage credit for consumers, aiming to stabilize the housing market and make home buying more accessible for individuals and families.