Which of the following is NOT a function of Fannie Mae?

Fannie Mae, or the Federal National Mortgage Association, plays a critical role in the secondary mortgage market but does not engage in direct lending to borrowers. Instead, its primary functions include purchasing mortgages from lenders, which helps to provide them with more capital to continue lending. By doing this, Fannie Mae helps to support mortgage market liquidity, ensuring that there is enough funding for new home loans through refinancing and purchasing existing mortgages.

Additionally, Fannie Mae issues mortgage-backed securities (MBS), which are financial instruments created from pooling together multiple mortgages and selling shares to investors. This process further enhances liquidity and stability in the mortgage market.

By focusing on supporting lenders and investors rather than directly lending to homebuyers, Fannie Mae maintains its role as a facilitator in the market rather than a direct financial institution for individuals looking for home loans.