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Fannie Mae
Fannie Mae Also known as the Federal National Mortgage Association. Fannie Mae is chartered by congress but owned by shareholders as a private company. This company does business by purchasing mortgages from various lenders around the U.S. It then sells these mortgages in the form of securities on a secondary market. The original lender, upon selling a mortgage to Fannie Mae, has the cash free to make another mortgage loan to another potential homeowner. Fannie Mae was established as a government controlled institution in 1938. It transitioned to its current privately-held form in 1968. It functions as one of many financial institutions on the secondary mortgage market buying and selling mortgages to provide more money for primary lenders. By providing more money to lenders, more mortgages can be made, which allows more low-income or mid-income families to obtain the money they need to buy a home. See also: Freddie Mac