Search

Federal National Mortgage Association (FNMA or Fannie Mae)

definition

A privately held corporation originally charted by Congress in 1933 to help ensure that banks have a continuous supply of money available for underwriting mortgage loans. Fannie Mae does not loan money for mortgages. Instead, it purchases existing mortgage notes from lenders, repackages them into portfolios, or mortgage-backed securities and sells them to investors on the secondary market. On the Web at www.fanniemae.com.

Related Terms

 • quasi public corporation