federal national mortgage association (Meaning)
federal national mortgage association (n)
a federally chartered corporation that purchases mortgages
Synonyms & Antonyms of federal national mortgage association
No Synonyms and anytonyms found
federal national mortgage association Sentence Examples
- The Federal National Mortgage Association (FNMA), also known as Fannie Mae, is a United States government-sponsored enterprise (GSE) that provides liquidity to the housing market by purchasing mortgages from banks and other lenders.
- FNMA was created in 1938 during the Great Depression to help revive the housing market and to provide a source of mortgage financing for low- and moderate-income families.
- FNMA is a major player in the secondary mortgage market, which is the market where existing mortgages are bought and sold.
- By purchasing mortgages from banks and other lenders, FNMA helps to increase the supply of funds available for new mortgages.
- This, in turn, helps to keep mortgage rates low and to make it easier for people to buy homes.
- FNMA also provides guarantees on mortgage-backed securities, which are bonds that are backed by a pool of mortgages.
- These guarantees help to make mortgage-backed securities more attractive to investors, which also helps to keep mortgage rates low.
- In addition to its role in the secondary mortgage market, FNMA also plays a role in the affordable housing market.
- FNMA provides funding for a variety of affordable housing programs, including programs that help low- and moderate-income families to buy homes.
- FNMA also works with state and local governments to help develop affordable housing strategies.
FAQs About the word federal national mortgage association
a federally chartered corporation that purchases mortgages
No synonyms found.
No antonyms found.
The Federal National Mortgage Association (FNMA), also known as Fannie Mae, is a United States government-sponsored enterprise (GSE) that provides liquidity to the housing market by purchasing mortgages from banks and other lenders.
FNMA was created in 1938 during the Great Depression to help revive the housing market and to provide a source of mortgage financing for low- and moderate-income families.
FNMA is a major player in the secondary mortgage market, which is the market where existing mortgages are bought and sold.
By purchasing mortgages from banks and other lenders, FNMA helps to increase the supply of funds available for new mortgages.
