Fnma (Noun)
Meaning
A federally chartered corporation that purchases mortgages.
Classification
Nouns denoting groupings of people or objects.
Examples
- The Federal National Mortgage Association (FNMA) is a major player in the secondary mortgage market, purchasing mortgages from lenders and packaging them into securities.
- Borrowers can benefit from lower interest rates and longer repayment terms due to FNMA's involvement in the mortgage market.
- The lender sold the mortgage to FNMA, which then securitized it and sold it to investors.
- FNMA's underwriting guidelines are followed by many lenders, as they provide a framework for evaluating the creditworthiness of borrowers.
- The housing market's stability is partly due to FNMA's role in providing liquidity to lenders, allowing them to originate more mortgages.