The Federal National Mortgage Association is more commonly known as Fannie Mae. The federal agency is in charge of buying mortgages from lenders and pooling them together to sell to other investors. Fannie Mae was found in 1938 as part of the New Deal. Fannie Mae was originally founded to ensure local banks had plenty of federal money to finance home mortgages. Although Fannie Mae is a government sponsored entity, it has been traded on public exchanges since 1968. The chief purpose of the corporation is to increase the amount of money that is available for home mortgages. The organization fulfills a valuable function because it buys mortgages from retail lenders. These lenders sell their mortgages to Fannie Mae, have more capital and can lend this money to other home buyers.
