Final answer:
When Fannie Mae purchases a loan from a lender for cash, it is called securitization. Fannie Mae plays a major role in the secondary loan market.
Step-by-step explanation:
When Fannie Mae purchases a loan from a lender for cash, it is called securitization. Securitization is the process where financial institutions buy loans from lenders and package them into securities, which are then sold to investors. Fannie Mae, as a government-sponsored enterprise, plays a major role in the secondary loan market, where these securities are bought and sold.