the implementation of its homeownership assistance initiatives, negotiation of workouts of troubled loans, and other loss mitigation activities. Real Estate Owned Management: If a loan defaults and the company acquires a home through foreclosure or a deed-in-lieu of foreclosure, the company markets and sells the home through local real estate professionals. Lender Repurchase Evaluations: The company conducts post-purchase quality control file reviews to ensure that loans sold to, and serviced for, the company meets its guidelines. Multifamily segment This segment provides mortgage market liquidity for properties with five or more residential units, which might be apartment communities, cooperative properties, seniors housing, dedicated student housing or manufactured housing communities. This segment works with the company’s lender customers to provide funds to the mortgage market primarily by securitizing multifamily mortgage loans into Fannie Mae MBS. The company also purchases multifamily mortgage loans and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also works with the company’s Capital Markets segment to facilitate the purchase and securitization of multifamily mortgage loans and securities. The company’s multifamily guaranty book of business consists primarily of multifamily mortgage loans underlying Fannie Mae MBS and multifamily loans held in its retained mortgage portfolio. This segment has primary responsibility for pricing and managing the credit risk on its multifamily guaranty book of business, including managing the credit risk on multifamily loans and Fannie Mae MBS backed by multifamily loans that are held in the company’s retained mortgage portfolio. Multifamily Mortgage Securitizations This segment creates multifamily Fannie Mae MBS in lender swap transactions in a manner similar to the company’s Single-Family segment. The company’s multifamily lender customers typically deliver only one mortgage loan, often a fixed-rate loan, to back each multifamily Fannie Mae MBS. The company also issues structured transactions backed by multifamily Fannie Mae MBS through the Fannie Mae Guaranteed Multifamily Structures program. This provides additional liquidity and stability to the multifamily market, while expanding the investor base for multifamily Fannie Mae MBS. Delegated Underwriting and Servicing (DUS) Under the company’s model, DUS lenders are pre-approved and delegated the authority to underwrite and service loans on behalf of it. In exchange for this authority, DUS lenders are required to share with it the risk of loss over the life of the loan. DUS is a business model in the commercial mortgage industry. The company’s DUS model aligns the interests of the lender and the company. Its 25-member DUS lender network, which is comprised of large financial institutions and independent mortgage lenders, continues to be its principal source of multifamily loan deliveries. Multifamily Mortgage Servicing Multifamily mortgage servicing is performed by the lenders who sell the mortgages to the company. Multifamily mortgage servicers that are members of its DUS network have agreed to accept loss sharing. Because of its loss-sharing arrangements with its multifamily lenders, transfers of multifamily servicing rights are infrequent, and the company monitors its servicing relationships and enforces its right to approve servicing transfers. As a seller-servicer, the lender is responsible for evaluating the financial condition of properties and property owners, administering various types of agreements (including agreements regarding replacement reserves, completion or repair, and operations and maintenance), as well as conducting routine property inspections. Capital Markets segment This segment manages the company’s mortgage-related assets and other interest-earning non-mortgage investments. The company funds its purchases primarily through proceeds that the company receives from the issuance of debt securities in the domestic and international capital markets. This segment has primary resp
fannie mae (FNMA:OTC US)
3900 Wisconsin Avenue, NW
Washington, DC 20016
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