What does the acronym Fannie Mae represent?

The acronym Fannie Mae stands for the Federal National Mortgage Association. This entity was created to expand the secondary mortgage market by securitizing mortgage loans in the United States. It plays a crucial role in making home financing more accessible, as it buys loans from lenders, which enables those lenders to free up cash and provide more loans to consumers.

By purchasing mortgages, Fannie Mae helps to ensure that there is a steady supply of money available for home loans, which can stabilize the housing market. The association is instrumental in providing liquidity, stability, and affordability in the housing market, thus supporting borrowing and homeownership access for consumers.

The other options represent different entities or acronyms that relate to the housing finance system but do not accurately describe Fannie Mae specifically. For example, the Federal Housing Finance Agency is the regulator for Fannie Mae and Freddie Mac, while the Federal Home Loan Mortgage Corporation refers to Freddie Mac, a separate but related organization. The Federal Mortgage Corporation is not an accepted or recognized acronym in this context.