Real Estate Glossary

What is Federal National Mortgage Association?

The Federal National Mortgage Association (FNMA), also known as Fannie Mae, is a government-sponsored enterprise (GSE) that was created in 1938 to promote affordability and accessibility in the housing market. It does this by purchasing mortgages from lenders and then reselling them to investors. By doing this, Fannie Mae helps to ensure that lenders have enough money on hand to make new loans to borrowers, which helps to keep interest rates low and make it easier for people to buy homes. Additionally, Fannie Mae sets standards for mortgages that are sold to it, which helps to ensure that borrowers are given loans that they can afford to repay.