Fannie Mae (NYSE:FNM) 3900 Wisconsin Avenue NW Washington, DC 20016 Phone: (202) 752-7000 Fax: (202) 752-4447 http://www.fanniemae.com
Fannie Mae is a government-sponsored enterprise that was chartered by Congress in 1938 to support liquidity and stability in the secondary mortgage market, where existing mortgage loans are purchased and sold. It is a stockholder-owned corporation organized and existing under the Federal National Mortgage Association Charter Act. The Company operates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities, including mortgage-related securities guaranteed by it, from primary mortgage market institutions, such as commercial banks, savings and loan associations, mortgage banking companies, securities dealers and other investors. It provides additional liquidity in the secondary mortgage market by issuing guaranteed mortgage-related securities. The Company is organized in three complementary business segments: Single-Family Credit Guaranty, Housing and Community Development, and Capital Markets. Single-Family Credit Guaranty, or Single-Family, business works with its lender customers to securitize single-family mortgage loans into Fannie Mae MBS and to facilitate the purchase of single-family mortgage loans for its mortgage portfolio. Single-family mortgage loans relate to properties with four or fewer residential units. Housing and Community Development, or HCD, business works with the Company's lender customers to securitize multifamily mortgage loans into Fannie Mae MBS and to facilitate the purchase of multifamily mortgage loans for its mortgage portfolio. Multifamily mortgage loans relate to properties with five or more residential units, which might be apartment communities, cooperative properties or manufactured housing communities. HCD business also makes federal low-income housing tax credit partnership, debt and equity investments to increase the supply of affordable housing. Capital Markets group manages the Company's investment activity in mortgage loans, mortgage-related securities and other investments, its debt financing activity, and its liquidity and capital positions. The Company funds its investments mainly through proceeds it receive from its issuance of debt securities in the domestic and international capital markets. The Company's main customers are lenders that operate within the primary mortgage market where mortgage loans are originated and funds are loaned to borrowers. Its customers include mortgage banking companies, savings and loan associations, savings banks, commercial banks, credit unions, community banks, insurance companies, and state and local housing finance agencies. Lenders originating mortgages in the primary mortgage market often sell them in the secondary mortgage market in the form of whole loans or in the form of mortgage-related securities. The Company's competitors include Freddie Mac, Ginnie Mae, the FHLBs, FHA, financial institutions, securities dealers, insurance companies, pension funds, investment funds and other investors. It competes to purchase mortgage assets in the secondary market both for its investment portfolio and for securitization into Fannie Mae MBS. Competition for the acquisition of mortgage assets is affected by many factors, including the supply of residential mortgage loans offered for sale in the secondary market by loan originators and other market participants, the current demand for mortgage assets from mortgage investors, and the credit risk and prices associated with available mortgage investments. The Company is subject to government oversight and regulation. Its regulators include FHFA, the Department of Housing and Urban Development, the Securities and Exchange Commission, and the Department of the Treasury.
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