Fannie Mae

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise operating in the U.S. secondary mortgage market. It does not lend directly to homebuyers; instead, it purchases mortgages from banks, credit unions, and other lenders, which frees up their capital to issue new home loans. The company packages these purchased mortgages into mortgage-backed securities that are sold to investors, providing liquidity to the housing finance system. Its primary customers are mortgage originators and financial institutions, while its policies indirectly shape borrowing conditions for homebuyers and renters across the country. Fannie Mae also sets underwriting guidelines and offers tools, research, and multifamily financing programs aimed at supporting affordable and stable access to mortgage credit.