Fannie Mae Definition

Fannie Mae (Federal National Mortgage Association, FNMA) is the largest buyer of existing mortgages. The FNMA was originally organized by the federal government in 1938 to purchase FHA-insured mortgages. The association was reorganized in 1968 as a quasi-private corporation whose entire ownership is private.

Fannie Mae raises capital by issuing corporate stock which is actively traded on the New York Stock Exchange and by selling mortgages out of its portfolio to various investors.

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