Federal National Mortgage Association


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Federal National Mortgage Association

(FMNA), commonly known as

Fannie Mae,

government-sponsored enterprise that is the largest purchaser and guarantor of home mortgages in the country. Headquartered in Washington, D.C., Fannie Mae buys mortgages from such lenders as banks and savings and loans, packages them, and resells them on the open market, thus creating fluidity and lessening lenders' risk. Fannie Mae's creation of this secondary mortgage market enables low- and middle-income individuals and families to obtain mortgages and purchase homes. The corporation was founded (1938) by the federal government to buy and sell mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration (now the Veterans Affairs Dept.). Rechartered in 1954, it was privatized in 1968. That year also marked the establishment of a federally owned sister corporation, the Government National Mortgage Association (GNMA), or Ginnie Mae, which is administered by the Dept. of Housing and Urban Development and helps to finance public housing. Fannie Mae's corporate credibility was damaged by revelations (2004) that it manipulated its earnings from 1998 to 2004, in part to maximize bonus payments to its corporate executives. Problems in the housing and mortgage industry that began in 2007 led in 2008 to increasing losses at—and concern about a possible bankruptcy of—Fannie Mae and especially Freddie Mac (the Federal Home Loan Mortgage CorporationFederal Home Loan Mortgage Corporation,
commonly known as Freddie Mac,
government-sponsored enterprise that uses private capital to buy home mortgages as a means to help lower housing costs.
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), and resulted in the two mortgage guarantors being placed under the conservatorship of Federal Housing Finance Agency.

Federal National Mortgage Association (Fannie Mae)

The quasi-private corporation chartered by the US government that functions as a secondary mortgage market for private residences.
References in periodicals archive ?
Federal National Mortgage Association, to Wendt Todd, 2236 Rose Blossom Dr, Springfield, 9747; $189,900.
Federal National Mortgage Association, Fannie Mae Form 2000 (Washington, D.C.: Federal National Mortgage Association, 1996).
Federal National Mortgage Association, to Lyons Eric L; 4436 Spring Meadow Ave, Eugene.
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have been the principal engines pushing the criminally risky and thoroughly corrupt subprime mortgage market.
NHDC bought the project for $2.1 million in December 2004 from Fannie Mae (the Federal National Mortgage Association).
(16) In Georgia, SouthTrust Bank invested approximately $14 million in municipal bonds and Federal National Mortgage Association wraps ("FNMA wraps").
Today, Washington offers a raft of mortgage subsidies to the population at large through institutions such as the Federal National Mortgage Association and the Federal Housing Administration.
At the same time, he's trimmed his holdings of longer-dated Treasuries and has purchased federally issued mortgage-backed securities from the Federal National Mortgage Association, for example.
The whipsaw possibility was obliterated to a large extent by the Tax Court decision in Federal National Mortgage Association (FNMA), 100 TC 541 (1993), in which losses sustained on certain interestrate futures, short sales of Treasury securities and put options on Treasury futures were allowed as ordinary, since they were an "integral part" of a system by which FNMA purchased and held mortgages.
The temporary and proposed regulations were issued under sections 1221 and 446 in response to both the Tax Court's decision in Federal National Mortgage Association v.
A long-awaited Tax Court decision in a case involving the Federal National Mortgage Association has resulted in a resounding victory for Fannie Mae.
Here's how ARMs work: Banks make adjustable rate mortgage loans and typically sell them to government agencies such as the Government National Mortgage Association (GNMA or Ginnie Mae), the Federal National Mortgage Association (FNMA or Fannie Mae), or the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac).

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