Fannie Mae, officially known as the Federal National Mortgage Association, is a government-sponsored enterprise in the United States. Established in 1938, its primary purpose is to expand the secondary mortgage market by purchasing mortgages from lenders. This process helps to ensure that more money is available for home loans, making it easier for people to buy homes. By buying and securitizing mortgages, Fannie Mae provides liquidity, stability, and affordability to the housing market. It plays a crucial role in supporting the housing finance system, allowing lenders to offer more loans to consumers while managing risk effectively.