What is Fannie Mae's full name?

What is Fannie Mae's full name?

• A. Federal National Mortgage Agency
• B. Federal National Mortgage Association
• C. Federal Housing Association
• D. Federal Mortgage Security Corporation

Answer: (B)

Fannie Mae's full name is the Federal National Mortgage Association. This agency was created by Congress in 1938 and plays a pivotal role in the U.S. housing market by providing liquidity and stability. By purchasing mortgages on the secondary market, Fannie Mae facilitates the availability of mortgage credit for homebuyers, which is critical for promoting home ownership. The term "Federal National Mortgage Agency" is commonly used, but it is actually a misnomer for Fannie Mae's full title. The options like "Federal Housing Association" and "Federal Mortgage Security Corporation" do not accurately represent Fannie Mae and pertain to different entities or concepts in the housing finance system. Understanding the correct name of Fannie Mae is crucial for grasping its function and impact within the mortgage market and the larger economy.

Fannie Mae's full name is the Federal National Mortgage Association. This agency was created by Congress in 1938 and plays a pivotal role in the U.S. housing market by providing liquidity and stability. By purchasing mortgages on the secondary market, Fannie Mae facilitates the availability of mortgage credit for homebuyers, which is critical for promoting home ownership.

The term "Federal National Mortgage Agency" is commonly used, but it is actually a misnomer for Fannie Mae's full title. The options like "Federal Housing Association" and "Federal Mortgage Security Corporation" do not accurately represent Fannie Mae and pertain to different entities or concepts in the housing finance system. Understanding the correct name of Fannie Mae is crucial for grasping its function and impact within the mortgage market and the larger economy.