Why Fannie Mae Stock Was Up Big Today

Shares of the Federal National Mortgage Association (OTC: FNMA) were surging on Wednesday, up about 18.8% as of 2:15 p.m. ET. The over-the-counter (OTC) security, also known as Fannie Mae, is trading at around $0.59 per share and is up some 68% year to date.

The markets were trending lower on Wednesday as the S 500 index fell 14 points (0.3%), the Dow Jones Industrial Average dropped 57 points (0.1%), and the Nasdaq Composite plunged 80 points (0.6%) as of 2:15 p.m. ET.

Federal National Mortgage Association, or Fannie Mae, is a government-sponsored entity that acquires mortgage loans from smaller banks or credit unions and guarantees these loans for low- to median-income borrowers on the secondary market.

Source Fool.com