The Federal National Mortgage Association
) commonly known as Fannie Mae, was set up as a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to expand the secondary mortgage market by "securitizing mortgages" in the form of mortgage-backed securities allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on thrifts. Fannie Mae
was taken over by the federal government in 2008.