Series 6: Federal National Mortgage Association

Taken from our Series 6 - Investment Company Products/Variable Contracts Representative Exam

Definition of the term Federal National Mortgage Association...

a GSE also known as Fannie Mae that purchases mortgages on the secondary market and pools them to create mortgage-backed securities and collateralized mortgage obligations. Its purpose is to bring more funds into the housing sector to encourage home ownership, and it is backed by an implied, but not explicit, guarantee of the federal government.

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