Final answer:
Fannie Mae buys FHA-insured loans from lenders, increasing the liquidity of these financial institutions and supporting the broader housing market.
Step-by-step explanation:
Fannie Mae does not make FHA-insured loans, insure FHA loans, nor directly service FHA-insured loans. Fannie Mae's role in the housing finance system is to buy mortgages from lenders, including those that could be FHA-insured. By purchasing these loans, Fannie Mae helps to replenish lenders' funds so they have the capability to lend to other borrowers, thus facilitating the availability of mortgage financing in the United States. The FHA, on the other hand, provides insurance on loans made by approved lenders to protect against losses if borrowers default, but does not directly involve itself in the selling or servicing of the loans once they are made.