The Quiz: Which government-sponsored enterprise helps borrowers get mortgages?
Farmer Loans
CHL Banks
Fannie Mae
Lenders union
Officially known as the Federal National Mortgage Association, Fannie Mae is a government-sponsored enterprise whose goal is to help low- to moderate-income borrowers get home mortgages. Established in 1938 during the Great Depression, Fannie Mae doesn’t give buyers mortgages but instead buys and guarantees mortgages from other lenders through the secondary mortgage market, creating more liquidity for lenders.
The correct answer to this quiz is Fannie Mae.