What is Fannie Mae?

Fannie Mae, also known as the Federal National Mortgage Association, is accurately described as a government-sponsored enterprise (GSE) that plays a significant role in the mortgage market. Its primary function is to enhance the flow of funds to mortgage lenders and provide liquidity, stability, and affordability to the housing market by purchasing and securitizing mortgages. This allows lenders to offer more loans to homebuyers, thereby supporting home ownership and housing market stability.

In contrast, the other options do not correctly describe Fannie Mae's role or nature. While regulation of real estate agents involves state laws and agencies, it is not a function of Fannie Mae. The term “a type of loan with low interest” may refer to various loans available on the market, yet it does not reflect Fannie Mae's defining purpose in housing finance. Lastly, Fannie Mae operates as a for-profit corporation, not as a non-profit organization, further distinguishing it from the other choices provided.