The Federal National Mortgage Association (FNMA) or more commonly known as Fannie Mae is a United States GSE, Government sponsored entity. Founded in 1938 during the Great Depression as part of President Roosevelt‘s New Deal, it’s purpose was to expand the secondary mortgage market by securitizing mortgages in the form of MBSs or mortgage backed securities. This allows lenders the ability to reinvest their assets in making new mortgages and promoting home ownership throughout the U.S.A. Since 1968, Fannie Mae has been a publicly traded company. Along with its brother organization, Freddie Mac, they are responisble for keeping the conventional mortgage market healthy by guaranteeing loans up to a certain size, called the conforming loan limit which is updated annually by state and county throughout the U.S. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
