What it means: FNMA is the Federal National Mortgage Association, commonly known as Fannie Mae. Fannie Mae is a corporation created by Congress to support the secondary mortgage market. It purchases Federal Home Administration, Veterans Affairs and conventional mortgages from primary lenders and sells them to investors. The index measures mortgage commitments (Mtg Com) for delivery (del) within 30 to 60 days; that is the required net yield on mortgage loans that lenders sell to FNMA, which in turn sells them to investors.
How it's used: It's an index that is used primarily by lenders that sell their loans to Fannie Mae. The lenders use it to price their loans. It has little direct impact on ordinary investors.
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