In real estate finance, Fannie Mae is the common name for the Federal National Mortgage Association (FNMA). It is a government sponsored enterprise created to support the secondary mortgage market by purchasing mortgages from lenders.
By buying and securitizing residential mortgage loans, Fannie Mae helps provide liquidity and stability to the housing finance system. This allows lenders to free up capital and make additional loans to homebuyers, helping to promote access to affordable housing.
