Fannie Mae (FNMA) Federal National Mortgage Association

History of “Fannie Mae,” (FNMA) or otherwise known as “The Federal National Mortgage Association,” formed in the year of 1938, to help repair the lapsed housing market during the Great Depression.  It wasn’t until 1970 congress established “Freddie Mac,” (FHLMC) or otherwise known as “The Federal Home Loan Mortgage Corporation,” to detour Fannie Mae from monopolizing & to offer consumer competition to “Fannie Mae.”

As we know,  Fannie Mae (FNMA) & Freddi Mac (FHLMC) purchase mortgages are referred as “Conforming,” or “Conventional Loans.”  These loans purchased by either entity must conform FNMA or FHLMC’s underwriting guidelines & lending limitations apply.  Conventional loans (owned by Fannie or Freddie) are not insured by the federal government.  If the loan is not FHA, VA, or USDA the likely hood the loan is a Fannie Mae or Freddie Mac is assumed.

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