Fannie Mae (Federal National Mortgage Association)
Fannie Mae (FNMA) is a government-sponsored enterprise (GSE) that was created in 1938 to expand the availability of mortgage credit throughout the United States. It is the largest provider of mortgage financing in the country, and it is one of the largest sources of financing for low- and moderate-income households. Fannie Mae is a publicly traded company and is regulated by the Federal Housing Finance Agency (FHFA).
History of Fannie Mae
Fannie Mae was created by the federal government in 1938 as part of the New Deal. Its original purpose was to purchase mortgages from banks and other lenders, which would help to stabilize the housing market and make mortgages more accessible to low- and moderate-income households. Over the years, Fannie Mae has evolved into a publicly traded company that is regulated by the FHFA. It is the largest provider of mortgage financing in the United States, and it is one of the largest sources of financing for low- and moderate-income households.
Fannie Mae is a major player in the secondary mortgage market, which is the market for the sale and purchase of existing mortgages. It purchases mortgages from lenders, pools them together, and then sells them to investors. This helps to provide liquidity to the mortgage market and makes it easier for lenders to originate mortgages. Fannie Mae also provides mortgage insurance to lenders, which helps to protect them from losses if a borrower defaults on their loan.
Comparison Table
| Fannie Mae | Freddie Mac |
|---|---|
| Created in 1938 | Created in 1970 |
| Regulated by the FHFA | Regulated by the FHFA |
| Largest provider of mortgage financing in the US | Second largest provider of mortgage financing in the US |
| Provides mortgage insurance to lenders | Provides mortgage insurance to lenders |
Summary
Fannie Mae is a government-sponsored enterprise (GSE) that was created in 1938 to expand the availability of mortgage credit throughout the United States. It is the largest provider of mortgage financing in the country, and it is one of the largest sources of financing for low- and moderate-income households. Fannie Mae is a major player in the secondary mortgage market, which is the market for the sale and purchase of existing mortgages. For more information about Fannie Mae, visit their website at https://www.fanniemae.com/.
See Also
- Freddie Mac
- Mortgage-Backed Securities
- Secondary Mortgage Market
- Mortgage Insurance
- Federal Housing Finance Agency (FHFA)
- Government-Sponsored Enterprise (GSE)
- Mortgage-Backed Securities (MBS)
- Mortgage-Backed Securities (MBS)
- Mortgage Servicing Rights (MSR)
- Mortgage-Backed Securities (MBS)
