Federal National Mortgage Association Fannie Mae / F.N.M.A.

The Federal National Mortgage Association, aka FNMA or more commonly; Fannie Mae, is a company that provides a source where mortgage lenders can sell the loans they have made to borrowers so that the money can be used again to make more loans to more borrowers. This system is known as the 'Secondary Mortgage Market.'

Since Sept. 6, 2008, Fannie has been under conservatorship by the Federal Housing Finance Agency or FHFA. As a company, Fannie Mae always strives to make a profit but as an arm of the Goverment, they also exist to provide a strong, active mortgage credit system for the American people.

• Fannie Mae sets the rules or guidelines that borrowers must meet in order to get a Fannie Mae loan. These rules are all about balancing risk management with the goals of wide-spread home ownership. You will commonly hear these rules referred to as 'Investor' or 'Agency' guidelines. These rules are what makes Fannie Mae loans different from Freddie Mac loans, FHA loans, VA loans and all other loan programs. This is also why it is so important to work with a professional, experienced, Fresno mortgage loan officer who knows the differences in order to give the customer the best deal for their goals and unique situation.
• Fannie Mae indirectly sets the interest rates that borrowers pay for Fannie Mae loans. Lenders look to see what Fannie Mae is currently paying for mortgage loans and then set their rates so that they can make a profit when selling the loans to Fannie. You can get more information about this on my Rates Page