| You are here: | About>News & Issues>US Economy> Government Agencies> Fannie Mae - How the Federal National Mortgage Association Creates Lower Interest Rates and How FNMA Helps You |
![]() | US Economy |
Fannie Mae Related LinksFreddie MacHow Mortgage Rates Are SetThe Role Of Housing In the U.S. Economy Fannie Mae Related Web SitesFannie Mae Web SiteDetail On the Laws Guiding Fannie MaeFNMAs Home Buyer Guide Federal National Mortgage Association (FNMA)What Fannie Mae Is: Fannie Mae is short for Federal National Mortgage Association (FNMA). It was created in 1938 to
establish a secondary
market for mortgages insured by the Federal Housing Administration(FHA). In 1968 it became a
shareholder-owned company that can buy any mortgages, not just those insured by the government.
It is listed on the NYSE. What Fannie Mae Does: Fannie Mae buys mortgages from banks, a process known as buying on the secondary market. It
then packages these into
mortgage-backed securities, and resells them to investors on Wall Street. Fannie Mae also
provides financing for development of affordable rental housing. A certain percentage of Fannie
Maes mortgages must serve low and moderate-income families. How Fannie Mae Affects the U.S. Economy: Fannie Mae stimulates the housing market, which comprises 10% of the
economy. By doing so, it creates wealth for homeowners who receive greater equity from higherpriced
homes. It also allows low and moderate income families to get a financial cushion beneath
them, and a higher standard of living, in the form of home ownership. How Fannie Mae Affects You: Fannie Mae helps you in two ways:
Fannie Mae Related LinksFreddie MacHow Mortgage Rates Are SetThe Role Of Housing In the U.S. Economy Fannie Mae Related Web SitesFannie Mae Web SiteDetail On the Laws Guiding Fannie MaeFNMAs Home Buyer Guide |
|
All Topics | Email Article | | | ![]() |
| Advertising Info | News & Events | Work at About | SiteMap | Reprints | Help | Our Story | Be a Guide |
| User Agreement | Ethics Policy | Patent Info. | Privacy Policy | ©2008 About, Inc., A part of The New York Times Company. All rights reserved. |


