Fannie Mae And Freddie Mac What Homebuyers Need To Know Now
Fannie Mae and Freddie Mac — Who Are They? Fannie Mae (the Federal National Mortgage Association, FNMA) and Freddie Mac (Federal Home Loan Mortgage Corporation, FHLMC) are government-sponsored enterprises (GSEs) that purchase mortgages. President Franklin D. Roosevelt established Fannie Mae in 1938 to purchase Federal Housing Administration loans. The intention was to allow for more mortgages to help people afford housing after the Great Depression. Fannie Mae became a public company and started selling stock to shareholders in 1968, but the government still backed its loans....