The correct spelling of "Federal National Mortgage Association" is [ˈfɛdərəl ˈnæʃənəl ˈmɔrgədʒ əˌseɪʃən]. The word "federal" is pronounced with stress on the first syllable followed by the schwa sound in the second syllable. "National" is pronounced with stress on the first syllable followed by the weak vowel sound in the second syllable. "Mortgage" is pronounced with stress on the first syllable followed by the schwa sound in the second syllable, while "Association" is pronounced with stress on the third syllable. The IPA phonetic transcription helps to accurately spell and pronounce the word.
The Federal National Mortgage Association (FNMA), also known as Fannie Mae, is a United States government-sponsored enterprise (GSE). It was created in 1938 during the Great Depression with the aim of expanding the availability of mortgage credit by providing a secondary market for mortgage loans. Fannie Mae operates under a federal charter but is publicly traded on the New York Stock Exchange.
As a secondary mortgage market participant, Fannie Mae purchases mortgage loans from banks, mortgage companies, and other lenders, using their vast resources to support the housing market. This transaction allows the original lender to use the proceeds of the loan to make additional mortgages, thus increasing the availability and affordability of home loans.
Fannie Mae primarily deals with conventional loans, which are not insured or guaranteed by the federal government. By purchasing and securitizing these loans, Fannie Mae helps provide liquidity to the mortgage market, making it easier for lenders to offer more mortgages to potential homebuyers.
The federal government created Fannie Mae to ultimately promote homeownership by ensuring the availability of affordable mortgages. Fannie Mae also sets underwriting guidelines and establishes standards for residential mortgage loans in the United States. It plays a crucial role in the functioning of the mortgage industry, providing stability and access to the housing market for millions of Americans.