If you are searching for the meaning of Fannie Mae in real estate and also a definition of Fannie Mae, then this blog post is helpful for you
Definition
Created by Congress in 1938 to bolster the housing industry during the Depression, Fannie Mae
was originally part of the Federal Housing Administration (FHA) and authorized to buy
only FHA-insured loans to replenish lenders’ supply of money. In 1968, Fannie Mae became a
private company operating with private capital on a self-sustaining basis. Its role was expanded to
buy mortgages beyond traditional government loan limits, reaching out to a broader cross-section
of Americans.
Today, Fannie Mae operates under a congressional charter that directs it to channel its efforts into
increasing the availability and affordability of homeownership for low-, moderate-, and middle-income Americans.
Fannie Mae receives no government funding or backing and is one of the
nation’s largest taxpayers as well as one of the most consistently profitable corporations in
America. Fannie Mae establishes strict guidelines for mortgage loans it is willing to purchase. As
the largest buyer of mortgage loans in the US, these guidelines have become the industry standard
for the majority of home loans. Any loan that meets these Fannie Mae guidelines is called a
“conforming loan”.
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