Definition: Fannie Mae, the Federal National Mortgage Association, is a government-sponsored enterprise that supports housing finance by purchasing eligible mortgages and financing them through the secondary market.
Example
A lender sells an eligible mortgage to Fannie Mae and can use the replenished funds for additional lending.
Keep the distinction clear
Fannie Mae is not the same as FHA and does not function as the homebuyer's ordinary direct retail lender. Loan ownership and servicing can also be held by different organizations.
Related terms
Freddie Mac · Ginnie Mae · Secondary Mortgage Market
Keep studying
Primary and Secondary Mortgage Markets: Fannie Mae, Freddie Mac, and Ginnie Mae
References: Fannie Mae: role in housing finance
Pronunciation (US): FAN-ee may (capitals show stress)
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