The Federal National Mortgage Association (AKA Fannie Mae) is a public company operating under federal charter and is the US's primary source for mortgage funding, financing one of every five home loans. Fannie Mae buys mortgages from lenders and resells them, transferring risk from lenders and allowing them to offer mortgages to those who may not otherwise qualify. The company was hit hard by the subprime mortgage crisis of 2007 and had to be rescued by the Federal Reserve.
Fannie Mae is a government-sponsored enterprise (“GSE”) chartered by the U.S. Congress. Its regulators include the Office of Federal Housing Enterprise Oversight (“OFHEO”), the Department of Housing and Urban Development (“HUD”), the Securities and Exchange Commission (“SEC”), and the Department of the Treasury. The U.S. government does not guarantee, directly or indirectly, the company's securities or other obligations.