Federal National Mortgage Association (Fannie Mae)

Popular Terms
US government sponsored public corporation (established in 1938) that buys and pools qualified mortgage loans from their originating financial institutions. It then issues securities backed by its guarantee (and not that of the US government) against the mortgage pool for sale in the open market to provide fresh funding for home mortgages. Fannie Mae, as it is popularly called, is the largest US player in the secondary mortgage market.


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