What is Fannie Mae

 

People who are new to the Vancouver Real Estate Market often hear the words Fannie Mae, but do not know what exactly it is. Here is a short explanation.

Fannie Mae stands for “The Federal National Mortgage Association” , commonly known as Fannie Mae, It was founded in nineteen-thirty eight as part of FDR’s New Deal. It is a federal government-backed enterprise although it has been a freely traded organization beginning in 1968. The  objective is to improve the secondary home loan market by purchasing home loans in the what are called  mortgage-backed securities (MBS). By doing this, it makes it possible for financial institutions to reinvest their property and assets into more financing and in result improving the volume of financial institutions in the home loan market by lessening the dependence on thrift and loans.

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