What organization is commonly referred to as Fannie Mae?

Fannie Mae is the widely recognized name for the Federal National Mortgage Association. This organization plays a critical role in the U.S. housing finance system by purchasing and securitizing mortgages, which helps to enhance the availability of mortgage credit for homebuyers and homeowners. By ensuring that a steady stream of mortgage funds is available, Fannie Mae helps stabilize the housing market and encourages a steady supply of affordable homes.

The name "Fannie Mae" is derived from the agency's original name which was established in 1938, and it has since become synonymous with government-sponsored enterprises (GSEs) involved in the secondary mortgage market. Understanding Fannie Mae's function is essential for those studying mortgage lending, as it directly impacts how mortgages are underwritten and financed in the market.