Which of the following is NOT an activity typically associated with Fannie Mae?

Fannie Mae, or the Federal National Mortgage Association, plays a crucial role in the U.S. housing finance system, primarily by purchasing mortgages from lenders, which in turn helps to provide liquidity to the housing market. This process allows lenders to have more capital available to offer new mortgages to homebuyers.

Additionally, Fannie Mae is known for its efforts in sponsoring affordable housing initiatives, which aim to increase access to home ownership and ensure that housing remains accessible to a broader segment of the population. These activities are central to its mission of stabilizing the housing market and promoting homeownership.

Issuing government bonds is not an activity associated with Fannie Mae. While Fannie Mae does issue debt securities to raise funds for its operations, these are not government bonds; Fannie Mae operates in the secondary mortgage market and does not have the authority to issue bonds backed by the federal government. Instead, it issues mortgage-backed securities (MBS), which are different in that they are secured by the underlying pool of mortgage loans rather than being direct obligations of the U.S. government.

Therefore, the aspect of issuing government bonds is not aligned with Fannie Mae's typical activities, making it the correct choice among the provided options.