Fannie Mae

Fannie Mae, officially known as the Federal National Mortgage Association (FNMA), is a government-sponsored enterprise established in 1938 to support the U.S. housing market. Its main mission is to ensure liquidity, stability, and affordability in the mortgage market by purchasing and guaranteeing mortgages. This enables lenders to provide more home loans, particularly to low- and middle-income borrowers. Headquartered in Washington, D.C., Fannie Mae operates in the secondary mortgage market by buying loans from banks and mortgage originators. It securitizes these loans into mortgage-backed securities (MBS) and guarantees timely payments to investors, which helps lower borrowing costs and encourages investment in housing finance. Fannie Mae plays a vital role in facilitating access to affordable, long-term, fixed-rate mortgages for homebuyers and homeowners across the United States.