Fannie Mae

Fannie Mae is a pivotal government-sponsored enterprise (GSE) operating within the U.S. secondary mortgage market. Its core function involves providing liquidity, stability, and affordability to the housing market by purchasing residential mortgage loans from primary lenders. This enables originators to replenish their capital and extend more credit to homebuyers.

The organization distinguishes itself by acquiring a wide array of mortgage products, including conventional and government-backed loans (FHA and VA), from approved sellers and servicers. These acquired loans are then pooled into mortgage-backed securities (MBS), including Uniform Mortgage-Backed Securities (UMBS), which are sold to investors, facilitating capital flow throughout the housing ecosystem. The Selling Guide provides comprehensive requirements for lenders to do business with Fannie Mae, covering loan origination, eligibility, and underwriting standards.

Through its robust technology applications and stringent quality control processes, Fannie Mae plays a critical role in standardizing loan products and ensuring consistency across the mortgage industry. Its commitment to maintaining a healthy and accessible housing finance system underpins its operations, serving as a cornerstone for both lenders and homebuyers nationwide.