ctions, 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. Other Customer Services This segment provides the company’s lender customers with services that include offering to purchase various mortgage assets, including non-standard mortgage loan products; segregating customer portfolios to obtain optimal pricing for their mortgage loans; and assisting customers with hedging their mortgage business. These activities provide a flow of assets for its mortgage portfolio, help to create a market for its customers, and improve liquidity in the secondary mortgage market. Investment and Financing Activities This segment funds its investments primarily through the issuance of various debt securities in a range of maturities in the domestic and international capital markets. The active investors in its 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, insurance companies, and state and local housing finance agencies. During 2012, approximately 1,100 lenders delivered single-family mortgage loans to the company, either for securitization or for purchase. Its customer includes Wells Fargo Bank, N.A. Strategy The company has been focusing its efforts on various strategies, such as helping eligible Fannie Mae borrowers with high loan-to-value loans, including those whose loans are underwater, refinance to various sustainable loans, including loans that reduce their monthly payments, through the Administration’s Home Affordable Refinance Program; reducing defaults by offering borrowers loan modifications that could reduce their monthly payments and other solutions that enable them to stay in their homes (collectively, ‘home retention solutions’); pursuing short sales, which are also known as preforeclosure sales, as well as deeds-in-lieu of foreclosure, these ‘foreclosure alternatives’ help borrowers avoid foreclosure and reduce the overall severity of the losses that the company incurs; efficiently managing timelines for home retention solutions, foreclosure alternatives and foreclosures; improving servicing standards and servicers’ execution and consistency; managing its REO inventory to minimize costs and maximize sales proceeds; and pursuing contractual remedies from lenders, servicers, and providers of credit enhancement. Regulation The company is organized and existing under the Federal National Mortgage Association Charter Act, as amended. The Federal Housing Finance Agency (FHFA) is an independent agency of the federal government with general supervisory and regulatory authority over the company. Its regulators also include the Securities and Exchange Commission and the U.S. Department of the Treasury. Under the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Federal Housing Finance Regulatory Reform Act of 2008, FHFA must place the company into receivership if it determines that its assets are less than its obligations for 60 days, or the company has not been paying its debts as they become due for 60 days. Competition The company’s primary competitors for the issuance of mortgage-related securities are Ginnie Mae and Freddie Mac. History Federal National Mortgage Association was founded in 1938.
fannie mae (FNMA:OTC BB)
3900 Wisconsin Avenue NW
Washington, DC 20016
|Federal Home Loan Mortgage Corp||$2.99 USD||+0.02|
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