Who is Fannie Mae and what do they do?

Fannie Mae, or the Federal National Mortgage Association, is a government-supported company that helps keep home loans affordable and accessible for people across the U.S. Their main job is to make sure that banks and other lenders have enough money to continue offering home loans to buyers. Fannie Mae does this by buying home loans from these lenders, which gives the lenders more cash to lend out to other homebuyers.

After buying these loans, Fannie Mae bundles them together and sells them to investors as "mortgage-backed securities." This process keeps money moving into the housing market and helps keep mortgage rates more stable, even during tough economic times.

Overall, Fannie Mae’s goal is to make homeownership possible for more Americans, especially for low- and middle-income families. Thanks to Fannie Mae, lenders can offer long-term, fixed-rate loans (like the 30-year mortgage) more easily, giving more people a reliable way to afford a home.