Which statement about Fannie Mae is true?

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Multiple Choice

Which statement about Fannie Mae is true?

Fannie Mae functions as a Government-Sponsored Enterprise created to support liquidity in the mortgage market. It is not owned by the U.S. government; private shareholders own it, but it operates with a public mission and receives government support. It is regulated by the Federal Housing Finance Agency (FHFA), which supervises safety and soundness and can step in if needed, including placing the entity into conservatorship during crises. This setup—private ownership with formal, ongoing federal supervision—embodies the GSE structure, not a government-owned agency. The other descriptions don’t fit because it isn’t a government-owned entity, it does have government oversight through FHFA, and it isn’t a nonprofit organization.

Fannie Mae functions as a Government-Sponsored Enterprise created to support liquidity in the mortgage market. It is not owned by the U.S. government; private shareholders own it, but it operates with a public mission and receives government support. It is regulated by the Federal Housing Finance Agency (FHFA), which supervises safety and soundness and can step in if needed, including placing the entity into conservatorship during crises. This setup—private ownership with formal, ongoing federal supervision—embodies the GSE structure, not a government-owned agency. The other descriptions don’t fit because it isn’t a government-owned entity, it does have government oversight through FHFA, and it isn’t a nonprofit organization.

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