Which organization has the public mission to help more families achieve the American Dream of homeownership?

Which organization has the public mission to help more families achieve the American Dream of homeownership?

• A. Federal National Mortgage Association
• B. Federal Home Loan Mortgage Corporation
• C. Department of Housing and Urban Development
• D. Equal Credit Opportunity Act

Answer: (A)

The main idea is recognizing which entity exists to broaden access to homeownership by supporting the mortgage market. Federal National Mortgage Association, known as Fannie Mae, was created to increase the availability of mortgage money by buying loans from lenders and pooling them into securities. This boosts lenders’ capacity to offer more loans and lowers barriers for families seeking home financing, which aligns with expanding homeownership—the American Dream described in the prompt. Freddie Mac performs a similar function, but the wording in this context is most closely tied to Fannie Mae’s publicly stated mission. The Department of Housing and Urban Development handles housing policy and programs as a government department, not a single organization driven by that specific mission. The Equal Credit Opportunity Act is a law prohibiting lending discrimination, not an organization promoting homeownership.

The main idea is recognizing which entity exists to broaden access to homeownership by supporting the mortgage market. Federal National Mortgage Association, known as Fannie Mae, was created to increase the availability of mortgage money by buying loans from lenders and pooling them into securities. This boosts lenders’ capacity to offer more loans and lowers barriers for families seeking home financing, which aligns with expanding homeownership—the American Dream described in the prompt. Freddie Mac performs a similar function, but the wording in this context is most closely tied to Fannie Mae’s publicly stated mission. The Department of Housing and Urban Development handles housing policy and programs as a government department, not a single organization driven by that specific mission. The Equal Credit Opportunity Act is a law prohibiting lending discrimination, not an organization promoting homeownership.