The Federal National Mortgage Association (Fannie Mae) plays a crucial role in providing mortgage financing throughout the United States. Its core activity involves transforming mortgage loans, which are originated by various lenders, into standardized Fannie Mae mortgage-backed securities (MBS) for investors. The company's operations are categorized into two primary divisions: Single-Family and Multifamily. The Single-Family segment is dedicated to acquiring and securitizing a diverse range of residential mortgage loans. This includes conventional fixed-rate or adjustable-rate first-lien mortgages, as well as loans insured by the Federal Housing Administration (FHA), guaranteed by the Department of Veterans Affairs (VA), or supported by the U.S. Department of Agriculture's Rural Development Housing and Community Facilities Program. Additionally, it handles manufactured housing loans and other mortgage-related securities, while also providing mortgage servicing, credit risk management, and loss mitigation services. Conversely, the Multifamily segment specializes in financing multi-unit residential properties. It securitizes and purchases multifamily mortgage loans, converting them into Fannie Mae MBS, and offers credit enhancement for bonds issued by state and local housing finance authorities to fund multifamily housing initiatives. This division also issues structured MBS backed by its multifamily MBS, trades agency mortgage-backed securities, and invests in low-income housing tax credit (LIHTC) projects. Furthermore, it provides delegated underwriting and servicing, along with comprehensive mortgage and credit risk management services for multifamily properties. Fannie Mae's broad client base includes mortgage banking companies, savings institutions, commercial banks, credit unions, insurance providers, private mortgage originators, and state and local housing finance agencies. Founded in 1938, the organization is headquartered in Washington, D.C.
