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

Federal National Mortgage Association (FNMA)  

Definition 1.

Also known as Fannie Mae. 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. See Fannie Mae.
 
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