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Here are 1-3 brief analogies to describe Fannie Mae (FNMA):

• Like a specialized Goldman Sachs for residential mortgages, buying loans from banks and packaging them for investors.
• The Federal Reserve for the U.S. mortgage market, ensuring liquidity and stability by providing a secondary market for loans.
• A financial utility company for the housing market, providing the essential infrastructure and funding that allows banks to keep making new home loans.

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• Mortgage-Backed Securities (MBS): Investment products created by pooling residential mortgages purchased from lenders and selling shares in these pools to investors.
• Credit Guarantees on MBS: Provides guarantees to investors for the timely payment of principal and interest on the mortgage-backed securities it issues.
• Mortgage Acquisition: Purchases residential mortgages from primary lenders to provide liquidity and support the housing finance system.

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• Wells Fargo & Company (WFC)
• JPMorgan Chase & Co. (JPM)
• Bank of America Corporation (BAC)
• Rocket Companies, Inc. (RKT)
• UWM Holdings Corporation (UWMC)
• U.S. Bancorp (USB)

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Peter Akwaboah, Acting Chief Executive Officer and Chief Operating Officer

Peter Akwaboah assumed the role of Acting CEO and Chief Operating Officer at Fannie Mae in October 2025. He brings over 30 years of experience in financial services, with leadership roles in operations, technology, and innovation at prominent institutions such as Morgan Stanley, Royal Bank of Scotland, Deutsche Bank, KPMG, and IBM.

Chryssa C. Halley, Executive Vice President and Chief Financial Officer

Chryssa C. Halley is Fannie Mae's Executive Vice President and Chief Financial Officer, a position she has held since late 2021. She is responsible for the company's financial management, enterprise modeling, and enterprise strategic planning. Halley joined Fannie Mae in 2006 and has held various senior finance and accounting positions within the company, including Senior Vice President and Controller, and Senior Vice President and Deputy Controller. Before her tenure at Fannie Mae, she served as a Director of Accounting for the Federal Agricultural Mortgage Corporation and as Senior Director, Debt and Derivative Reporting at Freddie Mac.

Anthony Moon, Executive Vice President and Chief Risk Officer

Anthony Moon was appointed Fannie Mae's Executive Vice President and Chief Risk Officer in the fourth quarter of 2022. In this capacity, he oversees the company's Corporate Risk & Compliance Division. Prior to joining Fannie Mae, Moon was the Chief Risk Officer for Morgan Stanley Private Bank and Wealth Management. His extensive career includes C-level risk leadership positions at GE Capital, where he was also COO of Risk Management, Bank of Tokyo-Mitsubishi, and Bankers Trust.

John Roscoe, Co-President

John Roscoe was named Co-President of Fannie Mae in October 2025. Before this role, he served as Fannie Mae's Executive Vice President of Operations and Public Relations, and also held the position of chief of staff at the Federal Housing Finance Agency (FHFA).

Brandon Hamara, Co-President

Brandon Hamara was appointed Co-President of Fannie Mae in October 2025, and joined the Fannie Mae board of directors in October 2025. He previously served as a vice president at Tri Pointe Homes and was also on the board of Freddie Mac.

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1. Interest Rate Risk

   Fannie Mae's business model, involving a vast portfolio of mortgages and mortgage-backed securities, makes it highly vulnerable to fluctuations in interest rates. Changes in interest rates can significantly impact the value of its assets, its overall profitability, and the prepayment speeds of mortgages it holds or guarantees. Historically, Fannie Mae has measured its interest rate risk by evaluating changes in the market value of its equity. Increases in short-term interest rates and changes in the term spread can make the market value of Fannie Mae's equity vulnerable.

2. Regulatory and Political Risk (including Conservatorship and IPO Uncertainty)

   As a government-sponsored enterprise (GSE), Fannie Mae operates under significant regulatory oversight and has been in conservatorship since 2008. This status imposes substantial restrictions on its business activities and stockholder rights. The uncertainty surrounding its future structure, including a potential public offering (IPO), and ongoing regulatory scrutiny from entities like the Federal Housing Finance Agency (FHFA) introduce considerable risk. Regulatory changes, shifts in government policy, and investigations into regulatory bodies can directly influence Fannie Mae's operations, financial stability, and long-term outlook. There are ongoing discussions and proposals for reform that could reshape the company's investment case and future.

3. Credit Risk / Housing Market Risk

   Fannie Mae's core function involves assuming the credit risk associated with the mortgage loans it guarantees. Consequently, a downturn in the U.S. housing market, characterized by declining home prices, increased mortgage delinquencies, and defaults, poses a direct and significant threat to Fannie Mae's financial health. The company's underwriting policies include a comprehensive risk assessment of borrower credit history, income, and equity investment to mitigate this risk. Historically, the lack of sufficient capital requirements for GSEs contributed to outsized risk during periods of housing market stress.

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Single-Family Mortgage Market (U.S.)

For single-family mortgages, where Fannie Mae acquires loans from lenders, the U.S. mortgage origination market was valued at $1.69 trillion in 2024. Fannie Mae is a significant participant in the secondary market for these loans. As of January 2024, Fannie Mae's share of outstanding agency mortgage-backed securities (MBS) was $3.6 trillion, out of a total agency MBS market of $9.0 trillion.

Multifamily Mortgage Market (U.S.)

In the multifamily sector, Fannie Mae provides liquidity to the rental housing market. Multifamily lending in the U.S. reached $288.7 billion in 2024. The Mortgage Bankers Association (MBA) estimated the multifamily originations volume to be $297 billion in 2024 and is projected to increase to $390 billion in 2025. Fannie Mae's own baseline estimate for multifamily originations is $295 billion for 2024 and $350 billion for 2025. Fannie Mae and Freddie Mac collectively purchased over $140 billion in multifamily loans in 2024, representing 41% of the total multifamily mortgage volume by dollar amount. The total commercial and multifamily mortgage debt outstanding in the U.S. increased to $4.79 trillion in Q4 2024.

Mortgage-Backed Securities (MBS) Market (U.S.)

Fannie Mae's core business involves securitizing mortgage loans into MBS. The broader U.S. agency MBS market, which includes securities issued or guaranteed by government-sponsored enterprises like Fannie Mae and Freddie Mac, as well as government agencies like Ginnie Mae, is approximately $5.5 trillion. Approximately $9 trillion in mortgage loans outstanding are securitized in MBS, making this the largest sector of the fixed-income markets.

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The Federal National Mortgage Association (Fannie Mae) anticipates several key drivers influencing its future revenue over the next two to three years, primarily centered around its core business model and strategic financial management, despite a broader market outlook for modest revenue growth.

1. Consistent Guaranty Fee Revenues: Fannie Mae's primary revenue stream is derived from guaranty fees associated with its mortgage-backed securities. The company's guaranty book, valued at $4.1 trillion in Q3 2025, consistently drives these stable revenues, forming a durable foundation for its earnings. The consistency of this fee-driven business model is a key factor in maintaining its revenue base.

2. Mortgage Market Activity and Loan Acquisitions: Fannie Mae continues to play a critical role in providing liquidity to the mortgage market by acquiring and securitizing mortgages. This activity, including new loan acquisitions, contributes directly to its revenue. For instance, single-family loan acquisitions increased to $90 billion in the third quarter of 2025. The company supports hundreds of thousands of households annually through these efforts, including first-time homebuyers, ensuring a continuous flow of new business.

3. Resilience and Growth in the Multifamily Business: While the single-family portfolio experienced a slight contraction, Fannie Mae's multifamily business segment has demonstrated resilience and continued to grow. This segment's performance contributes to the overall revenue mix and provides a growth component within challenging market conditions.

4. Operational Efficiency and Disciplined Risk Management: A strong emphasis on operational efficiency and disciplined risk management is crucial for Fannie Mae's financial health and, indirectly, its revenue sustainability. The company's focus on cost management has led to reductions in non-interest expenses, which in turn supports net income. This prudent financial management underpins its ability to maintain its core operations and capitalize on market opportunities, thereby supporting its revenue-generating capacity.

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Outbound Investments

• Fannie Mae ceased investments in multi-funds within the Low-Income Housing Tax Credit (LIHTC) equity market at the end of 2022. This decision was driven by concerns among market participants that Fannie Mae might be considered a tax-exempt controlled entity (TECE) due to the Treasury's ownership of its preferred stock, which could impact other investors' anticipated economic returns.
• Effective April 2021, Fannie Mae tightened its underwriting criteria for second homes and investment properties. This included implementing a 7% limit on its acquisition of single-family mortgage loans secured by these property types, stemming from amendments to its senior preferred stock purchase agreement with the Treasury.