FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE

Fannie Mae is a leading source of financing for residential mortgages in the United States. In 2025, the company provided $409.3 billion in liquidity to the mortgage market, facilitating the financing of approximately 1.5 million home purchases, refinancings, and rental units. As a government-sponsored, stockholder-owned corporation chartered by Congress, Fannie Mae's mission is to provide liquidity and stability to the U.S. housing market and promote access to mortgage credit. The company primarily achieves this by purchasing residential mortgage loans originated by lenders. These loans are then placed into trusts, and Fannie Mae issues guaranteed mortgage-backed securities (MBS or Fannie Mae MBS) which are sold to global investors. Fannie Mae does not originate mortgage loans or lend money directly to borrowers. The company provides a guaranty on the MBS it issues, meaning if a borrower defaults on a mortgage loan within a Fannie Mae MBS, the company pays the shortfall to the MBS investor. In return for this guaranty, Fannie Mae receives a guaranty fee, which is the primary source of its revenues. Fannie Mae's earnings are influenced by the credit performance of the mortgage loans in its MBS, as it assumes the credit risk for these loans. To manage its mortgage credit risk exposure and meet capital and other requirements, the company transfers some of this risk to third parties through credit risk transfer and mortgage insurance. Fannie Mae supports both single-family and multifamily housing. Its Single-Family business finances properties with four or fewer residential units, while its Multifamily business finances residential buildings with five or more units.