Why was FNMA created?

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, was created in 1938 as part of the New Deal to address the housing crisis during the Great Depression. Its primary purpose was to increase the availability of mortgage funds to stimulate the housing market and support homeownership among Americans. By purchasing and guaranteeing mortgages, Fannie Mae aimed to enhance liquidity in the mortgage market, making it easier for lenders to provide loans to homebuyers.