Fannie Mae (Federal National Mortgage Association) - A private, shareholder-owned company sponsored by the federal government to ensure that mortgage money is available for people in communities all across America. Similar in mission and economic role to Freddie Mac, Fannie Mae does not lend money directly to homebuyers; instead Fannie Mae purchases loans from lenders, which helps provide an assurance to those lenders that they won't run out of mortgage funds.

As a Government Sponsored Entity (GSE), Fannie Mae is subject to federal flood regulations. Therefore, lenders which either sell loans to Fannie Mae or service loans for Fannie Mae must ensure that those loans are compliant with federal flood regulations. Fannie Mae ensures compliance through its contractual relationships with participating lenders and servicers.