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'''Fannie Mae'''  is the common name for the '''Federal National Mortgage Association''' ('''FNMA''').<ref>[http://www.visualthesaurus.com/cm/wordroutes/1529/ Blaming Fannie and Freddie], Ben Zimmer, ''Visual Thesaurus'', September 16, 2008</ref> Fannie Mae is a company that deals in the secondary [[mortgage]] market. A secondary mortgage market means the government purchases, or re-imburses the original lender for the value of the principal so that the original lender doesn't have to wait 30 years to collect the money it lent out, and create a new loan faster with to original principal. FNMA then packages loans together of similiar value and credit worthiness and resells them to investors, such as pension funds, etc. FNMA is a [[New Deal]] agency founded in 1938 by the U.S. government which did more to benefit big [[Wall Street]] banks than the common man by allowing them to re-lend the same money over and over again versus ordinary folks who could scarcely afford a home during the [[Great Depression]].

'''Fannie Mae'''  is the common name for the '''Federal National Mortgage Association''' ('''FNMA''').<ref>[http://www.visualthesaurus.com/cm/wordroutes/1529/ Blaming Fannie and Freddie], Ben Zimmer, ''Visual Thesaurus'', September 16, 2008</ref> Fannie Mae is a company that deals in the secondary [[mortgage]] market.  

 

A secondary mortgage market is where an investor, in this case the U.S. government, purchases, or re-imburses the original lender for the value of the principal so that the original lender doesn't have to wait 30 years to collect the money it is owed, and can create a new loan faster with to original principal. FNMA then packages loans together of similiar value and credit worthiness and resells them to other investors, such as pension funds, etc.  

 

FNMA is a [[New Deal]] agency founded in 1938 by the U.S. government which did more to benefit big [[Wall Street]] banks than the common man by allowing them to re-lend the same money over and over again versus ordinary folks who could scarcely afford a home during the [[Great Depression]].

Although remaining a government sponsored entity (GSE), the company began selling stock to the public in 1968. Fannie Mae has been described as middle class welfare.<ref>[http://www.bloomberg.com/news/2012-03-01/middle-class-welfare-state-invisible-by-design-commentary-by-ezra-klein.html Middle-Class Welfare State Is Invisible by Design,] Ezra Klein, ''Bloomberg'', 2012-03-01.</ref>

Although remaining a government sponsored entity (GSE), the company began selling stock to the public in 1968. Fannie Mae has been described as middle class welfare.<ref>[http://www.bloomberg.com/news/2012-03-01/middle-class-welfare-state-invisible-by-design-commentary-by-ezra-klein.html Middle-Class Welfare State Is Invisible by Design,] Ezra Klein, ''Bloomberg'', 2012-03-01.</ref>