FNMA - Federal National Mortgage Association - aka Fannie Mae
The definition of mortgage term: Federal National Mortgage Association (aka Fannie Mae)
More commonly referred to as Fannie Mae. FNMA is a government-sponsored organization created in 1938 in order to enhance the liquidity of lender's money. FNMA guarantee and purchases FHA and VA mortgages from smaller lenders. This allows the lenders to have less money tied up in mortgages and allows them to loan to more borrowers. The Federal Home Loan Mortgage Corporation (FHLMC) or Freddie Mac shares the same objective. However, FHLMC buys conventional mortgages from lenders.
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