Federal National Mortgage Association (Noun)
Meaning
A federally chartered corporation that purchases mortgages.
Classification
Nouns denoting groupings of people or objects.
Examples
- The Federal National Mortgage Association, commonly known as Fannie Mae, is a government-sponsored enterprise that provides liquidity to the mortgage market by purchasing mortgages from lenders.
- The Federal National Mortgage Association was created in 1938 to provide financing for low-cost housing and to stabilize the mortgage market during the Great Depression.
- As a result of the housing market crisis, the Federal National Mortgage Association was placed into conservatorship by the Federal Housing Finance Agency in 2008.
- The Federal National Mortgage Association purchases mortgages from lenders and packages them into mortgage-backed securities, which are then sold to investors.
- The Federal National Mortgage Association provides financing for single-family homes, as well as for apartment buildings and other multifamily housing projects.