Fannie Mae, established by Congress in 1938, operates at the centre of the American housing finance system. The organisation purchases mortgages from lenders, bundles them into mortgage-backed securities, and sells them to investors - a mechanism that creates a continuous flow of capital enabling lenders to offer more home loans. In 2025, Fannie Mae provided $409 billion in funding that helped approximately 1.5 million households buy, refinance, or rent homes.
The organisation is credited with popularising the 30-year, fixed-rate mortgage, a product that transformed homeownership from an unpredictable expense into a stable financial commitment accessible to millions of Americans. This structural innovation remains foundational to how American households finance property purchases.
Beyond single-family mortgages, Fannie Mae operates a substantial multifamily business that finances rental housing through programmes including Delegated Underwriting and Servicing (DUS) and Low-Income Housing Tax Credit (LIHTC) investments. These operations span every state and market across the United States, supporting the supply of quality, affordable rental housing. The organisation's core technical domains encompass mortgage finance, securitisation, underwriting, servicing, and housing market analytics.
