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Fannie Mae

The Federal National Mortgage Association, which is more commonly known in colloquial terms as Fannie Mae, is a government-sponsored enterprise (GSE) that was established in 1938 by the Roosevelt administration as part of the New Deal. On its creation, the primary goal of Fannie Mae was to bring liquidity and stability to residential mortgage markets. It created a secondary market for housing loans, and by providing federal dollars to local banks and other loan originators that issued mortgages, Fannie Mae made it possible for many more citizens, who may not have otherwise qualified, to obtain loans and purchase homes. However, in the wake of the global financial crisis that began in 2008, attention has turned to Fannie Mae for the role it and other GSEs ...

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