The Federal National Mortgage Association, commonly known as Fannie Mae, is a government-sponsored enterprise (GSE) chartered to enhance the liquidity, stability and affordability of the U.S. housing market. By purchasing residential mortgage loans from originators such as banks and mortgage companies, Fannie Mae provides lenders with the capital needed to fund new home loans. Its activities support a broad range of borrowers, including first-time homebuyers and those seeking to refinance existing mortgages, by fostering a more consistent flow of mortgage credit across economic cycles.
Fannie Mae’s principal services center on the acquisition and securitization of single-family and multifamily mortgages. After buying mortgages that meet its credit and underwriting standards, the company pools these loans into mortgage-backed securities (MBS) and guarantees timely payment of principal and interest to investors. Through its guarantee, Fannie Mae assumes a portion of credit risk, enabling investors to purchase MBS with confidence and lenders to originate loans with greater certainty around funding and risk management.
Serving borrowers and lenders nationwide, Fannie Mae provides an array of mortgage products tailored to diverse credit profiles and housing needs. Its offerings include fixed-rate and adjustable-rate mortgage options, as well as specialized programs for multifamily rental properties that support affordable housing initiatives in metropolitan and rural communities. Fannie Mae also delivers research, technology platforms and risk-management solutions to mortgage originators, facilitating streamlined underwriting and compliance with evolving regulatory standards.
Established in 1938 as part of the New Deal, Fannie Mae has played a pivotal role in the development of the U.S. secondary mortgage market. Today, it operates under the oversight of the Federal Housing Finance Agency (FHFA) and remains in conservatorship, a status initiated in 2008 to safeguard financial stability. The company is led by an executive team with deep experience in housing finance, risk management and capital markets, working alongside a board of directors committed to advancing Fannie Mae’s mission of expanding access to sustainable, affordable mortgage credit.
AI Generated. May Contain Errors.
