Fannie Mae (FNMA) is a government-sponsored enterprise (GSE) chartered by the federal government to provide liquidity and stability to the U.S. housing market by buying mortgages from banks and other lenders. It was created in 1938 as part of the New Deal, and it plays a crucial role in the U.S. housing finance system by purchasing mortgages from lenders and securitizing them into mortgage-backed securities, which are then sold to investors. This process helps to fund more mortgages and increase the availability of mortgage credit for borrowers. Fannie Mae operates under a congressional charter and is regulated by the Federal Housing Finance Agency (FHFA). It is not a government agency, but it receives support from the federal government and its securities are backed by the full faith and credit of the U.S. government.