Definition: The word "Federal National Mortgage Association Stock" refers to a specific type of securities that are issued by federal agencies or government entities for a purpose related to mortgages. These securities typically represent the equity interest held by the Federal Housing Administration (FHA) in mortgage-backed securities, which are also referred to as Government Sponsored Enterprises (GSEs). The term "National Mortgage Association" is used to distinguish these from commercial mortgage-backed securities. The stockholder of the federal agency or government entity that holds a federal national mortgage association stock typically has an equity interest in the entity. This means that they may be able to receive a return on their investment by owning shares of the federal agency's mortgage-backed securities. The value of these securities can be significant, depending on the size of the mortgage backed securities portfolio and market conditions. It is important to note that stock ownership in a mortgage-backed security does not guarantee any specific financial return or interest rate, as interest rates are typically set by the mortgage company issuing the security and can fluctuate. It's generally considered prudent for investors to carefully evaluate their investment strategy before investing in such securities.
You've scored 50% OFF Factor 🤤
Forget the empty fridge stare-down. Factor delivers fresh meals to your door. Just heat & eat!
Click to sign up for FACTOR_ meals.