During the Great Depression, nearly one in four homeowners lost their homes to foreclosure, the banks didn't have any money to lend, and the nation faced a real housing crisis.6 Congress responded in 1938 by creating the Federal National Mortgage Association (FNMA), better known as Fannie Mae, to provide reliable, steady funding for housing. It brought a new type of mortgage to the market: the long-term, fixed-rate loan with an option to refinance at any time.2
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