Federal National Mortgage Association

Federal National Mortgage Association, commonly known as Fannie Mae, provides financing solutions for residential mortgages in the United States. The company operates through two segments: Single-Family and Multifamily. In the Single-Family segment, it acquires and securitizes mortgages, offers credit risk and loss management services, and conducts mortgage securitization transactions such as lender swaps, portfolio securitizations, and structured securitizations. The Multifamily segment focuses on similar services for multifamily properties. Fannie Mae plays a key role in the U.S. housing finance system by ensuring liquidity, stability, and affordability in the mortgage market.

Fannie Mae's common stock trades on the OTC Markets OTCQB exchange under the ticker symbol FNMA. The stock is denominated in U.S. dollars (USD). As an over-the-counter listing, FNMA is not listed on major exchanges like the NYSE or Nasdaq, but it is still actively traded. Investors should be aware that OTC stocks may have lower liquidity and different reporting requirements compared to exchange-listed securities.

Federal National Mortgage Association operates in the Financial Services sector, specifically within the Mortgage Finance industry. This means the company is primarily involved in providing financing and services related to residential mortgages. As a government-sponsored enterprise (GSE), Fannie Mae does not originate loans directly but instead buys mortgages from lenders, packages them into mortgage-backed securities, and guarantees them, thereby facilitating the flow of funds into the housing market.

Fannie Mae is headquartered in Washington, District of Columbia, United States. The company serves the entire U.S. residential mortgage market, focusing on both single-family and multifamily properties. Its operations are concentrated in the United States, and it does not have significant international exposure. By providing liquidity to the mortgage market, Fannie Mae helps make homeownership and rental housing more accessible across the country.

Fannie Mae generates revenue primarily through its mortgage securitization activities and credit risk management services. In its Single-Family segment, the company earns guarantee fees for assuming credit risk on mortgage-backed securities it issues. It also profits from the spread between the interest earned on mortgage loans held in its portfolio and the cost of funding those loans. The Multifamily segment similarly earns fees and interest income. Additionally, Fannie Mae engages in lender swap transactions, portfolio securitizations, and structured securitizations, which provide further revenue streams. The company's business model relies on efficient capital markets and maintaining low credit losses.