Fannie Mae is active in the:

Fannie Mae operates primarily in the secondary mortgage market. This is the arena where existing mortgages are bought and sold, rather than where new loans are originated. Fannie Mae, officially known as the Federal National Mortgage Association, was created to enhance the flow of capital to mortgage lenders in order to expand homeownership opportunities.

In this market, Fannie Mae purchases loans from lenders, which allows those lenders to free up their capital. This process can enable lenders to offer more loans to homebuyers, as they are able to sell existing loans to Fannie Mae and reinvest the proceeds into new loans. This activity supports liquidity and stability within the housing finance system.

The primary mortgage market, in contrast, is where lenders work directly with borrowers to create new mortgage loans. Loan origination markets refer specifically to the process of creating and extending loans to consumers. The Federal Reserve market would involve broader economic policies and monetary regulation, which are not specific to the activities undertaken by Fannie Mae.

By focusing on the secondary mortgage market, Fannie Mae plays a crucial role in facilitating a steady flow of cash and credit in the housing market, thus making home financing more accessible for consumers.