Fannie Mae


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Related to Fannie Mae: Freddie Mac

Federal National Mortgage Association (Fannie Mae)

A publicly owned, government-sponsored corporation chartered in 1938 to purchase mortgages from lenders and resell them to investors. Known by the nickname Fannie Mae, it packages mortgages backed by the Federal Housing Administration, but also sells some nongovernment-backed mortgages.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Fannie Mae

Federal National Mortgage Association (FNMA). A publicly-traded company chartered by the U.S. Congress to guarantee mortgages granted to low- or middle-income households. In order to do this, it buys mortgages and repackages them, selling them as mortgage-backed securities. It also maintains its own portfolio of mortgage-backed securities. With the collapse of the housing bubble, Fannie Mae was placed in federal receivership in 2008 as a result of overexposure to this market. See also: Freddie Mac, Community Reinvestment Act, Credit crunch.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Fannie Mae

1. A private, shareholder-owned company created by Congress in 1938 to bolster the housing industry during the depression. Fannie Mae facilitates homeownership by adding liquidity to the mortgage market when it purchases loans from lenders who use the funds received to make additional loans. Fannie Mae finances mortgage purchases by issuing its own bonds or by selling mortgages it already owns to financial institutions. The firm's common stock trades as FNM on the New York Stock Exchange. Formerly called Federal National Mortgage Association. See also quasi-public corporation.
2. A security issued by this company that is backed by insured and conventional mortgages. Monthly returns to holders of Fannie Maes consist of interest and principal payments made by homeowners on their mortgages.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Fannie Mae.

Fannie Mae has a dual role in the US mortgage market.

Specifically, the corporation buys mortgages that meet its standards from mortgage lenders around the country. It then packages those loans as debt securities, which it offers for sale, providing the investment marketplace with interest-paying bonds.

The money Fannie Mae raises by selling these bonds pays for purchasing more mortgages. Lenders use the money they realize from selling mortgages to Fannie Mae to make additional loans, making it possible for more potential homeowners to borrow at affordable rates.

Because lenders want to ensure their mortgage loans are eligible for purchase, most adopt Fannie Mae guidelines in evaluating mortgage applicants.

Fannie Mae is described as a quasi-government agency because of its special relationship with the federal government. It's also a shareholder-owned corporation whose shares trade on the New York Stock Exchange (NYSE).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

Fannie Mae

A popular name for Federal National Mortgage Association.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Fannie Mae

One of two federal agencies that purchase home loans from lenders.The other is Freddie Mac.

See Secondary Mortgage Markets/Fannie Mae and Freddie Mac.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
* Sunriser Apartments, Sunrise, FL -- This 77-unit multifamily property received $3,850,000 funded under the Fannie Mae DUS Loan product line.
The inspector general does not say how much Fannie Mae might have overpaid, only that the agency should not be paying more than what the contract dictates.
Fearing that losses would harm Fannie Mae s ability to support housing, the government placed the company into conservatorship in September 2008 and recently pledged unlimited financial backing.
What is it exactly that Fannie Mae and Freddie Mac do?
The Treasury will lend money to Fannie Mae and Freddie Mac - and will buy their stock if necessary; the Federal Reserve also made its lending services available.
Even so, it will take a lot more than presidential friendship to end Fannie Mae's and Freddie Mac's dependence on their federal charters.
CONTACT: Fannie Mae, (800) 7FANNIE (732-6643), www.efannie mae.com.
"They should have been very, very conservative in how they state everything and not try to be on the cutting edge of these accounting rules, given that Fannie Mae's opponents were scrutinizing what they were doing."
The report finds that Fannie Mae's dodgy practices began about six years ago.
The report focuses specifically on four broad areas: a) Fannie Mae's treatment of deferred price adjustments and attempts to smooth earnings; b) its accounting treatment of derivative instruments and hedging transactions; c) the way in which it develops its accounting policies; and d) its internal controls over accounting policies and issues.
OIRA wants OFHEO to require Freddie Mac and Fannie Mae to comply with the public disclosure policy that the Securities and Exchange Commission requires of publicly traded firms, including "any additional disclosures SEC requires in the future." Currently, Freddie and Fannie may voluntarily comply with the policy, but they can abandon such compliance if they choose to do so.
WHEN A RECENT WALL STREET Journal editorial titled "Fannie Mae Enron" suggested that Fannie Mae puts taxpayer money at risk, mortgage industry lobbying group FM Watch couldn't have agreed more.