Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Fannie Mae or the FNMA is a Government-sponsored enterprise or GSE. This came up in 1938, as mentioned, for scaling up overall liquidity of loans or home mortgages, through the establishment of another mortgage market which would be secondary in nature. This is one of the biggest corporations in the United States. The FNMA had its objective of making more home loans or mortgages accessible for borrowers with lower or moderate incomes.
Fannie Mae does not ensure any mortgage origination or provision of the same for any borrowers. However, it buys and guarantees the same via the secondary mortgage market. It is one of the biggest mortgage buyers on the secondary market as well. The other one is its own sibling entity, called the Federal Home Loan Mortgage Corporation (Freddie Mac).
