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Federal National Mortgage Association

Federal National Mortgage Association FNMA- Is more commonly known as Fannie Mae. This corporation was chartered in 1938 to purchase mortgages from lenders to help resell them to the public at large and to investors. A government and chartered corporation partnership which buys mortgages from the secondary markets, in which they in tern pools them together and sells them as a mortgage backed security to investors on the open market. A monthly principal and different interest payments are guaranteed by the Federal National Mortgage Association but not by the Government of the Untied States of America. The association also sells mortgages not backed by the government and are sold mostly to investors.

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Definition of the Day Distribution Plan

Distribution Plan - a distribution plan is a plan executed by mutual fund companies. The purpose of the plan is too collect and assesses fees to shareholders of the funds, to offset expenses. The expenses could be for advertising costs or sales incentives (rewards for good behavior). The distribution plan...

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