Fannie Mae

Fannie Mae Information Overview

The Federal National Mortgage Association, more commonly known as Fannie Mae, is an agency of the federal created in 1938 to provide liquidity to housing markets by purchasing mortgages which are underwritten pursuant to Fannie Mae mortgage guidelines. Fannie Mae raises the capital to fund the purchase of those mortgage loans by issuing mortgage-backed securities to the public in the securities markets. Under the Housing and Development Act of 1968, FNMA 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 US government. Further, the securities issuer portion of the business was retained by the federal government and renamed Ginnie Mae for the Government National Mortgage Association.

Fannie Mae Information Funding

In issuing mortgage backed securities, Fannie Mae is issuing, in effect, an implied government guarantee, while Ginnie Mae remained the only mortgage securities issuer that actually has the full faith and credit guarantee of the federal government.

Over the years, Fannie Mae expanded its mandate to include underwriting mortgages for multifamily loans, affordable housing loans, and government revenue bond issues. On September 6, 2008 FNMA was taken into conservatorship by the federal government because of the losses incurred in its single family mortgage programs. However, FNMA continues to purchase mortgages under its DUS multifamily loan programs and continues to be very active. Please see the various Fannie Mae Loan Programs offered by Apartment Financing America.