Established
in 1938 by the U.S. Congress, his main job is to provide a secondary
market for mortgages.
Fannie Mae remained a part of the federal government until
1968, when he became a private corporation. Its main function today is
still to maintain a secondary market.
In order
to maintain a secondary market, Fannie Mae buys and sells
mortgages. Fannie
Mae borows money in the capital market by selling notes and
bonds. Fannie Mae will
purge his government backed and
conventional loans on one to four unit dwellings.
Fannie
Mae buys conventional loans only if the loans have been issued using
Fannie Mae
guidelines.
