privately operated corporation that fulfills a public mandate, such as purchasing loans in the secondary market, thereby helping to maintain adequate funding sources for lenders. Quasi-public corporations often have government backing behind their debt obligations, and some issue stock that is publicly traded. The Federal National Mortgage Association ( fannie mae) was founded to encourage mortgage lending by purchasing mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, and also conventional home mortgages.
corporation that is operated privately and often has its stock traded publicly, but that also has some sort of public mandate and often has the government's backing behind its direct debt obligations. Some examples: COMSAT (Communications Satellite Corporation), which was sponsored by the U.S. Congress to foster the development of space; the Federal National Mortgage Association (Fannie Mae), which was founded to encourage growth in thesecondary mortgage market; and the student loan marketing association (Sallie Mae), which was started to encourage the growth of a secondary market for student loans.
