Understanding Fannie Mae

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Fannie Mae is a private, shareholder-owned company that works to make sure mortgage money is available for people in communities all across America. They do not lend money directly to home buyers. Instead, they work with lenders to make sure they don't run out of mortgage funds, so more people can achieve the dream of homeownership.

They are the country's second largest corporation, in terms of assets, and the nation's largest source of financing for home mortgages. They are one of the largest financial services corporations in the world. In 1938, the Federal government established Fannie Mae to expand the flow of mortgage money by creating a secondary market. Fannie Mae was authorized to buy Federal Housing Administration (FHA)-insured mortgages, thereby replenishing the supply of money to lend.

Essential to Fannie Mae's success:

  • Housing Leadership: Serving as the indispensable leader in breaking down all barriers to affordable housing and homeownership
  • Honesty, Integrity and Mutual Respect: Upholding the highest standards of ethics in daily activitiesFinancial
  • Strength: Continually strengthening commitment to home buyers and investors alike through superb management of assets
  • Excellence and Teamwork: Working together to produce high-quality results in all aspects of business, while maximizing intellectual capacity
  • Innovation and Corporate Renewal: Challenging comfortable methods and seeking new approaches to achieve the greatest results
  • Customer Service: Striving to provide the best possible service for both external and internal customers

In 1968, Fannie Mae became a private company operating with private capital on a self-sustaining basis. Its role was expanded to buy mortgages beyond traditional government loan limits, reaching out to a broader cross-section of Americans.

Today, Fannie Mae operates under a congressional charter that directs us to channel our efforts into increasing the availability and affordability of homeownership for low-, moderate-, and middle-income Americans. Yet Fannie Mae receives no government funding or backing.