Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government-sponsored enterprise (GSE) operating in the housing finance sector of the United States. The organization plays a central role in the secondary mortgage market by providing liquidity and stability to the housing finance system.

Fannie Mae does not originate mortgage loans directly to borrowers. Instead, it purchases mortgage loans from banks and other lenders, pools them into mortgage-backed securities (MBS), and guarantees payments to investors.

Its core activities include:

• Mortgage Purchases: Buying residential mortgage loans from approved lenders.
• Mortgage-Backed Securities (MBS): Securitizing mortgage loans and issuing securities backed by those assets.
• Credit Guarantees: Guaranteeing timely payment of principal and interest to investors in Fannie Mae mortgage-backed securities.
• Housing Market Liquidity: Supporting consistent access to mortgage financing for homebuyers and homeowners.

Through this model, Fannie Mae helps lenders free up capital so they can continue issuing new mortgage loans, thereby supporting homeownership and the functioning of the U.S. housing market.

The organization operates primarily within the United States and works with mortgage lenders, investors, and housing institutions to facilitate mortgage credit availability.

Key factors affecting its operations include housing market conditions, interest-rate trends, mortgage default rates, regulatory oversight, and government housing policies.

Federal National Mortgage Association securities trade in the United States on the OTC market under the ticker FNMA.

History and Development

Fannie Mae was established in 1938 by the U.S. government as part of the New Deal initiatives during the Great Depression.

The organization was created to expand access to mortgage credit and increase liquidity in the housing market by purchasing mortgages from lenders.

In 1968, Fannie Mae was reorganized into a shareholder-owned company to remove its activities from the federal budget, while maintaining its status as a government-sponsored enterprise.

Over the following decades, the organization became one of the largest participants in the U.S. mortgage market through the purchase and securitization of residential mortgages.

During the global financial crisis of 2008, Fannie Mae was placed into conservatorship under the Federal Housing Finance Agency (FHFA) due to severe losses tied to the housing market collapse.

Since then, the company has continued operating under government conservatorship while maintaining its role as a major provider of liquidity to the U.S. housing finance system.

Additional Information

Federal National Mortgage Association (United States) is listed on the Nasdaq and has a market capitalization of $34.15 billion, with shareholders equity totaling $112.67 billion.

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Over the past 12 months, Federal National Mortgage Association reported $29.08 billion in revenue, generating net income of $14.42 billion.

Key financial metrics include a P/E ratio of 2.37, a price-to-book (P/B) ratio of 0.30, and a trailing twelve-month dividend yield of 0.00%.

The company trades under the ticker FNMA.