Question

All of the following statements regarding the Federal National Mortgage Association (FNMA) are true EXCEPT:_________

A) FNMA is owned by the U.S. government.
B) FNMA pass-through certificates are not guaranteed by the U.S. government.
C) interest on FNMA certificates is taxable at all levels.
D) FNMA stock is publicly traded on the NYSE.

Answer 1

A) FNMA is owned by the U.S. government.

Step-by-step explanation:

Federal National Mortgage Association (FNMA) also commonly referred to as "Fannie Mae" is a government-sponsored enterprise (GSE) that provides services such as purchasing mortgages from lending institutions so as to expand the secondary mortgage market or effectively boost affordable lending activity at the lending institutions. It was founded as part of the "New deal" during the Great Depression in 1938.

All of the following statements regarding the Federal National Mortgage Association (FNMA) are true;

1. FNMA pass-through certificates are not guaranteed by the U.S. government.

2. Interest on FNMA certificates is taxable at all levels.

3. FNMA stock is publicly traded on the NYSE.

However, it is false or incorrect to say that the FNMA is owned by the United States of America (USA) government.

The Federal National Mortgage Association (FNMA) is only being sponsored by the U.S government under the umbrella of the Federal Housing Finance Agency (FHFA).