Final answer:
Fannie Mae provides services for FHA-insured loans, which are home loans insured by the Federal Housing Administration. Fannie Mae's role is to purchase and guarantee these loans, providing liquidity to the mortgage market and encouraging banks to make more loans. This promotes accessible homeownership and supports the housing market.
Step-by-step explanation:
The subject of this question falls under Social Studies. Fannie Mae is a government-sponsored enterprise that provides services for Federal Housing Administration (FHA)-insured loans. FHA loans are home loans that are insured by the Federal Housing Administration, a government agency that aims to make it easier for low to moderate-income families to qualify for home mortgages. Fannie Mae's role is to purchase and guarantee these FHA-insured loans, which in turn provides liquidity to the mortgage market and encourages banks to make more loans.
By purchasing FHA-insured loans, Fannie Mae helps to stabilize the housing market and increase homeownership opportunities for a wider range of individuals and families. This is especially beneficial for borrowers who may have difficulty obtaining a conventional mortgage, as FHA loans typically have more flexible qualification criteria. Fannie Mae's involvement in the FHA loan market also helps to lower interest rates for borrowers and provide more affordable housing options.
Overall, Fannie Mae's services for FHA-insured loans play a crucial role in promoting accessible homeownership and supporting the housing market.