Fannie Mae



The Federal National Mortgage Association (FNMA), is a Government-Sponsored Enterprise (GSE) chartered by Congress. FNMA is known colloquially as "Fannie Mae." Ideally the concept of Fannie Mae is to keep money flowing to mortgage lenders, to help strengthen the U.S. housing and mortgage markets, and to support affordable homeownership.

Fannie Mae is a national mortgage finance company, but doesn't offer home loans. Rather they stand behind mortgage lenders – local and national banks, thrifts, credit unions, and other financial institutions in all 50 states – to securitize or buy the mortgage loans they originate, enabling them to replenish their funds. The model then allows those mortgage lenders to lend to other homeowners.