Federal National Mortgage Association

Established in 1938 and headquartered in Washington, D.C., the Federal National Mortgage Association (Fannie Mae) serves as a critical facilitator of mortgage funding within the United States. Its core function involves transforming home loans originated by various lenders into marketable securities, known as Fannie Mae mortgage-backed securities (MBS). The organization is structured into two main operating divisions: Single-Family and Multifamily. The Single-Family division focuses on residential properties. It acquires and pools diverse types of single-family mortgages for securitization, including fixed or adjustable-rate, first-lien loans, as well as those insured by the Federal Housing Administration (FHA), guaranteed by the Department of Veterans Affairs (VA) and the U.S. Department of Agriculture's Rural Development Housing and Community Facilities Program, and mortgages for manufactured homes. This segment also delivers mortgage servicing solutions and provides expertise in managing credit risk and potential financial losses. The Multifamily division caters to larger residential properties. It securitizes multifamily loans into Fannie Mae MBS and directly purchases such loans. This segment also boosts the credit quality of bonds issued by state and local housing finance authorities to fund multifamily projects. Additionally, it issues structured MBS backed by its own multifamily MBS, trades in agency multifamily mortgage-backed securities, and invests in low-income housing tax credit (LIHTC) initiatives. Services provided include delegated underwriting, loan servicing, and credit risk and loss management specifically for multifamily mortgages. Fannie Mae's diverse clientele spans numerous financial institutions, including mortgage banking companies, savings and loan associations, commercial banks, credit unions, insurance firms, independent mortgage originators, and government housing finance agencies at the state and local levels.