In real estate finance, the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government sponsored enterprise that operates as a privately owned corporation. It was originally established as a quasi public agency and later converted to its current structure.
Fannie Mae’s primary function is to buy and sell FHA, VA, and conventional residential mortgages in the secondary market. By purchasing these loans from lenders, Fannie Mae provides liquidity and stability to the housing finance system and helps ensure the continued availability of mortgage credit.
