Which enterprise is often referred to as Fannie Mae?

Which enterprise is often referred to as Fannie Mae?

• A. Federal Housing Administration
• B. Federal National Mortgage Association
• C. Federal Trade Commission
• D. Freddie Mac

Answer: (B)

Fannie Mae is commonly known as the Federal National Mortgage Association. This designation reflects its role in the mortgage market, where it was created to expand the secondary mortgage market by securitizing mortgage loans that are backed by a government guarantee. This allows lenders to reinvest their assets into more lending, which enhances the availability and affordability of housing. The Federal National Mortgage Association plays a crucial part in providing liquidity, stability, and affordability to the mortgage market, which in turn helps to support homeownership in the United States. Recognizing it by its full name, rather than just the nickname "Fannie Mae," underscores its significant role in the overall housing finance system and distinguishes it from related entities that have different functions or purposes.

Fannie Mae is commonly known as the Federal National Mortgage Association. This designation reflects its role in the mortgage market, where it was created to expand the secondary mortgage market by securitizing mortgage loans that are backed by a government guarantee. This allows lenders to reinvest their assets into more lending, which enhances the availability and affordability of housing.

The Federal National Mortgage Association plays a crucial part in providing liquidity, stability, and affordability to the mortgage market, which in turn helps to support homeownership in the United States. Recognizing it by its full name, rather than just the nickname "Fannie Mae," underscores its significant role in the overall housing finance system and distinguishes it from related entities that have different functions or purposes.