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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Fannie Mae  

Definition 1.

Federal National Mortgage Association.
 

Definition 2.

See Federal National Mortgage Association
 

Definition 3.

1. A nickname for the Federal National Mortgage Association (FNMA). A private, shareholder-owned company that purchases mortgages from lenders so those lenders will have more funds available to loan to other potential homebuyers. It finances its operations by issuing bonds or reselling loans in the form of mortgage-backed securities. FNMA is often called a "government-sponsored corporation" because it was created and chartered by Congress and is still regulated in a slightly different manner than other corporations. 2. A security issued by FNMA that is backed by insured and conventional mortgages. Investment returns are based on the interest and principal payments made by homeowners on their mortgages.
 
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