Federal National Mortgage Association

The Federal National Mortgage Association, widely known as Fannie Mae, plays a crucial role in the United States' housing finance system by ensuring the consistent availability of mortgage funding. It achieves this primarily by purchasing mortgage loans originated by various lenders and transforming them into Fannie Mae mortgage-backed securities (MBS), which are then sold to investors. Fannie Mae organizes its operations into two distinct areas: Single-Family and Multifamily. The Single-Family segment focuses on acquiring and securitizing mortgages for individual homes. This encompasses conventional fixed-rate or adjustable-rate, first-lien mortgages, along with those insured by the Federal Housing Administration (FHA), guaranteed by the Department of Veterans Affairs (VA), or supported by the USDA's Rural Development Housing and Community Facilities Program. It also deals with loans for manufactured housing and other related mortgage instruments. Beyond securitization, this segment offers essential services such as mortgage servicing for single-family homes and comprehensive credit risk and loss management solutions. Conversely, the Multifamily segment is dedicated to the apartment and multi-unit dwelling market. Its activities involve both securitizing and purchasing mortgage loans for multifamily properties. Additionally, it enhances the creditworthiness of bonds issued by state and local housing finance authorities that fund such developments. This segment further engages in issuing structured MBS, trading multifamily agency MBS, and investing in low-income housing tax credit (LIHTC) projects to support affordable housing initiatives. Its service offerings include delegated underwriting and servicing, in addition to managing credit risk and losses specifically for multifamily mortgages. Fannie Mae's extensive clientele spans a diverse range of financial institutions. These include mortgage banking firms, savings and loan associations, savings banks, commercial banks, credit unions, and community banks. It also partners with insurance companies, private mortgage originators, and state and local housing finance authorities. Established in 1938, the Federal National Mortgage Association maintains its headquarters in Washington, D.C.