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 was established in the year 1938 by the Congress as a Government-sponsored enterprise (GSE), with an aim towards ensuring more funding for affordable housing in the country. Fannie Mae took the private pathway in 1968 after investments deployed by shareholders. From late-2008, it has been supervised by the FHFA (Federal Housing Finance Agency) of the Government.
Fannie Mae or FNMA does not directly provide loans. Banks and other lenders hold the responsibility for loan applications, underwriting and verification. Before the closing, Fannie Mae will purchase the loans that are eligible, from these lenders. The mortgage loans here are called conforming mortgages and they have guarantees from Fannie Mae. Fannie Mae has certain requirements which depend on factors like the credit score, down payment, debt to income ratio, and so on. There are several mortgage options or programs available at the FNMA for borrowers.
