Also referred to as "Fannie Mae," this government-sponsored enterprise is chartered by Congress and owned by stockholders. This agency buys qualified mortgage loans from the financial institutions that originate them, securitizes the loans, and distributes the securities through the dealer community. Fannie Mae guarantees timely payment of both principal and interest on its mortgage securities, whether or not the payments have been collected from the borrower. These securities are not backed by the full faith and credit of the U.S. Government. The market value of these securities prior to maturity is not guaranteed and will fluctuate.