Which activity is primarily conducted by Fannie Mae?

Fannie Mae, also known as the Federal National Mortgage Association, primarily engages in the purchase of mortgages that have been originated by lenders. This activity plays a crucial role in the mortgage market, as it helps to provide liquidity and stability within the housing finance system. By purchasing these loans, Fannie Mae replenishes the funds available for lenders, allowing them to extend more loans to consumers.

This function of aggregating and securitizing mortgages contributes to the efficient functioning of the mortgage market, as it facilitates the flow of capital to mortgage lenders and ultimately supports home buying.

The other activities mentioned do not align with Fannie Mae's core function. For example, providing loans directly to consumers is typically the role of lenders rather than Fannie Mae. Offering financial literacy programs is not a primary focus of their operations, and underwriting insurance policies falls outside the scope of their activities. By concentrating on purchasing and securitizing mortgages, Fannie Mae contributes significantly to the availability of affordable mortgage financing in the market.