Fannie Mae Loan Programs

Fannie Mae Loan Programs

Multifamily Loans Insured By Fannie Mae (FNMA)

The Federal National Mortgage Association or Fannie Mae, or FNMA for short, is a US federal agency created by Franklin Roosevelt in 1938 to provide liquidity to the single-family housing market by purchasing mortgages underwritten under its guidelines. Fannie Mae funds the purchase of those mortgage loans by issuing mortgage-backed securities (MBS) to the public. Under the Housing and Development Act of 1968, Fannie Mae became a Government Sponsored Enterprise or GSE.

Common stock in Fannie Mae was sold to the public and its preferred stock was retained by the federal government. Further, the securities issuer portion of the business was retained by the federal government and renamed Ginnie Mae. It is important to note that Fannie Mae issued what was in effect an implied government guarantee while Ginnie Mae remained the only mortgage  securities issuer that actually had the full faith and credit guarantee of the federal government.

On September 6, 2008 Fannie Mae was taken into conservatorship by the federal government because of the losses incurred in its single family mortgage programs.  However, Fannie Mae continues to actively purchase mortgages under the Fannie Mae DUS multifamily loans program.

Over the years, the mandate for Fannie Mae loan programs have been expanded to include underwriting mortgages for multifamily loans, affordable housing loans, senior housing loans, manufactured housing community loans and government revenue bond issues. Fannie Mae loan programs offered by Apartment Financing America are listed in matrix form below.

Fannie Mae Role In Housing Finance

DUS Designated Underwriting & Servicing

As alternate capital sources have been extremely limited in the marketplace in the last several years, multifamily owners and developers have been increasingly turning to GSE loan programs to provide mortgage loan origination and refinancing of existing apartment projects. The primary benefit of both FHA loan programs and Fannie Mae loan programs is that they are a source of financing that is always available, regardless of the volatility and pervasive liquidity of capital markets. This overview of apartment mortgages offered by Fannie Mae loan programs is provided to familiarize our clients and visitors with Fannie Mae loan programs.

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