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.
This is a GSE or government-sponsored enterprise of the U.S. Government, and a publicly traded entity from 1968 onwards. It was established at the time of the Great Depression in 1938. It was a part of the well-known New Deal. The objective of the FNMA or the Federal National Mortgage Association is to scale up the secondary mortgage segment through the securitization of mortgages and loans via MBS (mortgage-backed securities), enabling reinvestment of assets of lenders into sanctioning more mortgages and scaling up the lender count in the mortgage market, thereby lowering dependence upon local loan associations and savings. Fannie Mae is one of the biggest corporations in the U.S.
The Federal National Mortgage Association naturally has a leading role to play in the real estate and property sector. It encourages more mortgages and home loans, thereby benefiting the real estate market, and making it possible for more buyers to invest in real estate through seamless mortgages.
