Federal National Mortgage Association General Information
Description
Founded in 1938, Federal National Mortgage Association is a source of financing for mortgages in the United States. The firm is a shareholder-owned corporation organized as a government-sponsored entity ("GSE"). The firm's charter is an act of Congress, which establishes that its purposes are to provide liquidity and stability to the residential mortgage market and to promote access to mortgage credit. The firm has been under the conservatorship of the Federal Housing Finance Agency ("FHFA") since September 6, 2008. The U.S. government does not guarantee the firm's securities or other obligations. The firm operates in the secondary mortgage market primarily working with lenders who originate loans to borrowers. It does not originate loans or lend money directly to borrowers in the primary mortgage market. Instead, it securitizes mortgage loans originated by lenders into the firm mortgage-backed securities ("MBS") that it guarantees; purchases mortgage loans and mortgage-related securities, primarily for securitization and sale at a later date; manages mortgage credit risk, and engages in other activities that increase the supply of affordable housing. The firm has two reportable business segments: Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to loans secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating primarily to loans secured by properties containing five or more residential units.
