Dwarf

DEFINITION of 'Dwarf'

A slang term used to describe a pool of mortgage backed securities (MBSs) that have been issued by Fannie Mae and have a maturity of 15 years.

BREAKING DOWN 'Dwarf'

Fannie Mae is short for the Federal National Mortgage Association. It is one of the governing bodies that are able to issue MBS that are guaranteed by the U.S. government or by an independent governing body in the secondary market. The other official bodies are Freddie Mac and Ginnie Mae. Ginnie Mae has the authority to guarantee MBS issues from qualified private lenders which meet a set of stringent criteria.

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RELATED FAQS
  1. Are mortgage-backed securities backed by any guarantees?

    Actually, any mortgage-backed security (MBS) guarantee depends on who issued it.To review, an MBS is a security, created ... Read Answer >>
  2. How do you use the FNMA selling guide?

    Learn about Fannie Mae Selling Guide and find out details about how its parts provide support to the business relationship ... Read Answer >>
  3. What is a Ginnie Mae security?

    A Ginnie Mae, or Government National Mortgage Association security, functions similarly to the process of lending someone ... Read Answer >>
  4. Can I buy a house directly from Fannie Mae (FNMA)?

    Yes; you can buy homes directly from Fannie Mae. Fannie Mae (the Federal National Mortgage Association, or FNMA) is a government-sponsored ... Read Answer >>
  5. What does FNMA stand for?

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