What is the largest and oldest secondary mortgage market in the U.S.?

Fannie Mae, officially known as the Federal National Mortgage Association, is the largest and oldest secondary mortgage market in the United States. Established in 1938 during the Great Depression, its primary purpose is to enhance the flow of credit to the housing market by buying mortgage loans from lenders, which in turn provides those lenders with the capital needed to issue more loans. This function helps maintain liquidity in the mortgage market and makes home financing more accessible for consumers.

Fannie Mae plays a critical role in stabilizing the mortgage market and promoting homeownership by ensuring a continuous supply of funds for mortgage lending. Its operations are central to the U.S. housing finance system, setting standards that lenders must follow for loans it will purchase, which helps to ensure a consistent level of quality in the mortgage market. While Freddie Mac and Ginnie Mae also play important roles, Fannie Mae holds the distinction of being the oldest and largest player in the secondary mortgage market.