The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government-sponsored enterprise established in 1938. Its primary purpose is to enhance the flow of mortgage funds in the housing market by purchasing loans from lenders, which helps to increase the availability of affordable housing for Americans. Fannie Mae plays a crucial role in the mortgage industry by providing liquidity, stability, and affordability. By buying and securitizing mortgages, it allows lenders to offer more loans to homebuyers. This process supports the overall economy and helps ensure that more people can achieve homeownership.