FNMASOTCFederal & Federally-Sponsored Credit AgenciesUS GAAP · USD

Federal National Mortgage Association Fannie Mae

Fannie Mae is a government-sponsored, stockholder-owned mortgage finance company chartered to support liquidity and stability in the U.S. housing market. It does not originate mortgages directly; instead, it buys or guarantees residential and multifamily mortgage loans, securitizes them into mortgage-backed securities, and provides credit guarantees to investors.

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Net income14.4bn USD
−15.4 %y/y
Free cash flow24.0bn USD
+328.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01m USD202020212022202320242025
RevenueOperating profit (EBIT)
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Business

Share of revenue
Single-Family Guaranty Business70 %

Acquires and guarantees mortgages on properties with four or fewer residential units, then securitizes them into Fannie Mae MBS.

Multifamily Guaranty Business20 %

Finances and guarantees mortgages on apartment and other residential buildings with five or more units.

Securitization and Structured MBS7 %

Issues standard and structured mortgage-backed securities, including lender swap and GeMS transactions.

Credit Enhancement and Liquidity Support3 %

Provides guarantees, liquidity commitments, and related support for housing finance transactions.

Customers

Fannie Mae's direct customers are mortgage lenders, servicers, dealers, and institutional investors rather than homebuyers. Lenders sell or securitize loans through Fannie Mae to obtain funding and manage balance-sheet risk, while investors buy the resulting MBS for credit enhancement and liquidity. In multifamily, borrowers and lenders use Fannie Mae financing to fund apartment and rental housing, especially mission-driven affordable segments.

Single-family mortgage lenders

Banks, independent mortgage companies, and other sellers that sell conforming loans to Fannie Mae for liquidity and capital relief.

Multifamily lenders and borrowers

Lenders and property owners financing residential buildings with five or more units, often using Fannie Mae execution for long-term funding.

Institutional MBS investors

Money managers, banks, insurers, REITs, central banks, and public entities that buy guaranteed MBS for yield and credit quality.

Credit-risk transfer counterparties

Hedge funds, insurers, and reinsurers that buy CAS/CIRT exposure to earn spread on mortgage credit risk.

Affordable and mission-driven housing participants

Borrowers and lenders using multifamily programs tied to FHFA mission requirements and underserved housing segments.

Strategy

Fannie Mae's strategy is to preserve its core role as a liquidity provider while managing credit risk through securitization, guaranties, and credit-risk transfer. It is also balancing FHFA mission requirements, including affordable and mission-driven multifamily lending, with capital, pricing, and conservatorship constraints. The company continues to rely on technology and standardized securitization infrastructure to support scale in single-family and multifamily execution.

Support single-family and multifamily mortgage liquidityShort term

This is the core mission and the main way Fannie Mae creates value in the housing finance system.

Increase mission-driven multifamily executionMedium term

FHFA requires a large share of multifamily purchases to serve affordable and underserved segments.

Transfer and manage mortgage credit riskMedium term

Credit performance directly affects earnings, capital, and volatility in a guaranty-based model.

Operate within conservatorship and regulatory limitsLong term

FHFA and Treasury agreements constrain pricing, capital, and strategic flexibility.

Geography

Fannie Mae's business is overwhelmingly U.S.-centric, with activity tied to the U.S. residential mortgage market and U.S. multifamily housing market. It also sells securities into global capital markets, so investor demand from domestic and international buyers affects execution and pricing. The company has no meaningful operating footprint outside the United States, but foreign central banks and other global investors are important buyers of its MBS.

Risks

The biggest company-specific risk is conservatorship: FHFA and Treasury can constrain pricing, capital, and business actions, which can reduce profitability and strategic flexibility. Fannie Mae is also exposed to mortgage credit performance, interest-rate sensitivity, and model/valuation risk because earnings depend on guaranty fees, fair value changes, and loss estimates. As a housing finance intermediary, it also faces regulatory, liquidity, and counterparty risks tied to lenders, servicers, investors, and credit-risk transfer partners.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Conservatorship and Treasury control1Mortgage credit deterioration2Interest-rate and fair value volatility3Regulatory caps and mission requirements4Counterparty and securitization infrastructure dependence5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Conservatorship and Treasury controlImpact: CriticalLikelihood: High

    FHFA controls business activities and can require actions that reduce profitability or increase risk.

    ExposurePricingCapital planningAcquisitionsShareholder rights
  2. Mortgage credit deteriorationImpact: HighLikelihood: High

    The company guarantees mortgage performance, so borrower defaults and home price declines can increase losses.

    Exposure: Single-family and multifamily guaranty books

  3. Interest-rate and fair value volatilityImpact: HighLikelihood: High

    Earnings include fair value gains/losses and are affected by prepayments, spreads, and hedging outcomes.

    ExposureMortgage assetsDebtDerivativesRetained portfolio
  4. Regulatory caps and mission requirementsImpact: MediumLikelihood: High

    FHFA purchase caps and affordable-housing mandates can limit volume mix and pricing flexibility.

    Exposure: Multifamily loan purchases and product strategy

  5. Counterparty and securitization infrastructure dependenceImpact: MediumLikelihood: Medium

    The company relies on lenders, servicers, investors, and U.S. FinTech for key processing functions.

    Exposure: Single-family securitization and servicing ecosystem

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Accounting

Judgemental items
Allowance for loan losses

Management says this estimate is critical because it depends on complex assumptions about credit performance and macro inputs.

Impact: Can materially change provision expense, net income, and capital

Fair value measurement

Fair value gains and losses are a meaningful driver of earnings and are sensitive to market rates and spreads.

Impact: Affects volatility in reported results

Hedge accounting and basis adjustments

Mortgage assets and debt are exposed to interest-rate risk, so hedge accounting can materially affect net interest income.

Impact: Influences income timing and comparability

Off-balance-sheet guarantees

Unconsolidated MBS and other guarantees create exposure that investors must assess beyond the balance sheet.

Impact: Affects risk assessment and contingent liability analysis

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Last updated: 24/09/2026