Federal National Mortgage Association

In the US, a government sponsored enterprise, commonly known as Fannie Mae, that purchases mortgages from lenders, pools them and resells them to investors as mortgage-backed securities. It operates under a congressional charter that directs it to increase the availability and affordability of homeownership for low and middle-income Americans. GSE status enables it to borrow at favourable rates of interest, although it has no government funding. Fannie Mae is shareholder owned and trades on the New York Stock Exchange.