Fannie Mae, Freddie Mac and Ginnie Mae, which it refers to as ‘agency MBS’. These transactions could provide for the future delivery of mortgage-backed securities with underlying single-family loans that share certain general characteristics (referred to as the ‘TBA market’). These purchase and sale transactions also could provide for the future delivery of specifically identified mortgage-backed securities with underlying loans that have other characteristics considered desirable by some investors (referred to as the ‘Specified Pools market’). Through the company’s trading activity in the TBA and Specified Pools markets, it provides liquidity to the agency MBS markets. Securitization Activities This segment is engaged in issuing both single-class and multi-class Fannie Mae MBS through both portfolio securitizations and structured securitizations involving third party assets. Portfolio Securitizations: This segment creates single-class and multi-class Fannie Mae MBS from mortgage-related assets held in the company’s retained mortgage portfolio. This segment might sell these Fannie Mae MBS into the secondary market or might retain the Fannie Mae MBS in the company’s retained mortgage portfolio. Structured Securitizations: This segment creates single-class and multi-class structured Fannie Mae MBS, for the company’s lender customers or securities dealer customers, in exchange for a transaction fee. In these transactions, the customer ‘swaps’ a mortgage-related asset that it owns (a mortgage security) in exchange for a structured Fannie Mae MBS that the company issues. This segment earns transaction fees for creating structured Fannie Mae MBS for third parties. The process for issuing Fannie Mae MBS in a structured securitization is similar to the process involved in its lender swap securitizations. Other Customer Services This segment provides the company’s lender customers with services that include offering to purchase mortgage assets; segregating customer portfolios to obtain optimal pricing for their mortgage loans; and assisting customers with hedging their mortgage business. These activities help to create a market for its customers and improve liquidity in the secondary mortgage market. Liquidity Support and Financing Activities This segment funds its purchases primarily through the issuance of various debt securities in a range of maturities in the domestic and international capital markets. The active investors in the company’s debt securities include commercial bank portfolios and trust departments, investment fund managers, insurance companies, pension funds, state and local governments, and central banks. Customers The company’s customers include mortgage banking companies, savings and loan associations, savings banks, commercial banks, credit unions, community banks, specialty servicers, insurance companies, and state and local housing finance agencies. During 2013, approximately 1,200 lenders delivered single-family mortgage loans to the company, either for securitization or for purchase. Its major customer includes Wells Fargo Bank, N.A. Strategy The company is focused on three primary goals, such as achieving continued improvement in its book of business; supporting the housing recovery by providing reliable, large-scale access to affordable mortgage credit and helping struggling homeowners; and helping to lay the foundation for a safer, transparent and sustainable housing finance system going forward. Competition The company primarily competes with Freddie Mac, the Federal Housing Administration, Ginnie Mae, and the Federal Home Loan Banks. History Federal National Mortgage Association was founded in 1938.
fannie mae (FNMA:OTC BB)
3900 Wisconsin Avenue, NW
Washington, DC 20016
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