Definition of Fannie Mae

What is Fannie Mae?

The Federal National Mortgage Association (FNMA), known as Fannie Mae, was chartered by Congress in 1938 to provide liquidity and affordability in the U.S. housing market. Fannie Mae is considered a government sponsored entity. Fannie Mae does not lend directly to borrowers. Like its Freddie Mac, its primary activity is to buy residential mortgage loans originated by lenders, then package those loans as securities for the capital markets.