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 facilitates mortgage securitization transactions such as lender swaps, portfolio securitizations, and structured securitizations. The Multifamily segment focuses on financing for multifamily properties. Fannie Mae does not originate loans but instead works with lenders to ensure liquidity in the mortgage market, helping to make homeownership and rental housing more accessible.

Federal National Mortgage Association trades on the OTC Markets OTCQB exchange under the ticker symbol FNMAK. Its stock is denominated in US Dollars (USD). The OTCQB is a venture market for early-stage and developing U.S. and international companies, providing transparent trading with no minimum financial standards. As a government-sponsored enterprise, Fannie Mae's common stock is not listed on major exchanges like the NYSE or Nasdaq but trades over-the-counter. Investors should be aware that OTC markets may have lower liquidity and different reporting requirements compared to exchange-listed stocks.

Federal National Mortgage Association operates in the Financial Services sector, specifically within the Mortgage Finance industry. As a mortgage finance company, Fannie Mae plays a critical role in the U.S. housing market by providing liquidity, stability, and affordability. It does not directly lend to homeowners but instead purchases mortgages from lenders, packages them into mortgage-backed securities, and guarantees them against credit losses. This helps banks and other lenders free up capital to issue more loans. The company's activities are closely tied to the health of the housing market and interest rate environment.

Federal National Mortgage Association is headquartered in Washington, District of Columbia, United States. It primarily serves the U.S. residential mortgage market, operating nationwide. The company was incorporated in 1938 and has been a key player in the U.S. housing finance system for decades. Fannie Mae's operations focus on the single-family and multifamily housing markets, providing financing solutions that support homeownership and rental housing across the country. Its activities are regulated by the Federal Housing Finance Agency (FHFA) and it operates under a conservatorship that began in 2008.

Federal National Mortgage Association generates revenue primarily through its mortgage acquisition and securitization activities. In the Single-Family segment, it earns guaranty fees for assuming credit risk on mortgage-backed securities (MBS) it issues. These fees are paid by lenders and are based on the outstanding principal balance of the loans. The company also generates income from its retained mortgage portfolio, which includes interest income on mortgage loans and MBS it holds. In the Multifamily segment, it earns similar guaranty fees and interest income. Additionally, Fannie Mae benefits from credit risk management services and structured securitization transactions. Its business model relies on the spread between the yield on its assets and its funding costs, as well as the credit performance of the loans it guarantees.