Fannie Mae

Who owns Fannie Mae?
Fannie Mae's ownership is complex. The company has been under conservatorship of the Federal Housing Finance Agency (FHFA) since September 2008. The U.S. Treasury holds senior preferred stock representing the government's financial stake. Common stock (FNMA) trades on OTCQB but has limited economic rights under conservatorship. The FHFA appoints Fannie Mae's board of directors, and since March 17, 2025, the FHFA Director serves as Chair of the Board. William J. Pulte currently serves as FHFA Director and Board Chair.

Is Fannie Mae publicly traded?
Fannie Mae's common stock (FNMA) and preferred stock trade on the OTCQB market, but the company has been under FHFA conservatorship since 2008. The common and preferred shares have limited economic rights under conservatorship, and the U.S. Treasury's senior preferred stock takes priority. The board of directors is appointed by FHFA, not elected by shareholders.

What is Fannie Mae's role in the housing market?
Fannie Mae operates in the secondary mortgage market, purchasing mortgages from lenders and packaging them into mortgage-backed securities (MBS). This process provides lenders with cash to make new loans, ensuring that mortgage credit is available to qualified borrowers. Fannie Mae and Freddie Mac together guarantee approximately 70% of new U.S. mortgage originations. Fannie Mae owns or guarantees an estimated 25% of single-family and 21% of multifamily mortgage debt outstanding in the United States.

When was Fannie Mae founded?
Fannie Mae was established in 1938 by the U.S. Congress as part of the New Deal. It was converted to a private shareholder-owned corporation in 1968 and listed on the NYSE. It was placed into FHFA conservatorship in September 2008 following the subprime mortgage crisis.

What is Fannie Mae's net income?
For FY2025 (ended December 31, 2025), Fannie Mae reported net income of $14.4 billion on net revenues of $29.0 billion. This was a decrease of $2.6 billion from FY2024 net income of $17.0 billion, primarily driven by a shift from a credit loss benefit to a credit loss provision and lower fair value gains. Q4 2025 net income was $3.5 billion. The company's net worth was $109.0 billion as of December 31, 2025.

What is the difference between Fannie Mae and Freddie Mac?
Fannie Mae (Federal National Mortgage Association, 1938) and Freddie Mac (Federal Home Loan Mortgage Corporation, 1970) are both GSEs that operate in the secondary mortgage market. Fannie Mae historically purchased mortgages from commercial banks and mortgage companies, while Freddie Mac was created to purchase mortgages from savings institutions (thrifts). Both are under FHFA conservatorship since 2008. Fannie Mae is the larger of the two, with a bigger guaranty book of business.

Will Fannie Mae exit conservatorship?
The Trump administration has expressed interest in ending the conservatorship of Fannie Mae and Freddie Mac, potentially through an IPO. However, the January 2025 SPSPA amendments require Treasury's prior written consent for any termination of conservatorship. FHFA must also conduct a public market impact assessment before requesting Treasury's consent. In June 2026, President Trump stated that he had not ruled out an IPO but added, "It's not a rush." No definitive timeline has been provided.

Fannie Mae was established in 1938 by the U.S. Congress as part of President Franklin D. Roosevelt's New Deal legislation. The Federal National Mortgage Association was created to address the housing crisis of the Great Depression, during which mortgage lending had collapsed and millions of Americans had lost their homes. The original Fannie Mae was a federal agency that purchased FHA-insured mortgages from lenders, providing those lenders with cash to make new loans.

In 1954, Congress reorganized Fannie Mae as a mixed-ownership corporation, with both government and private shareholders. In 1968, Congress split Fannie Mae into two entities: the current Fannie Mae, converted to a fully private shareholder-owned corporation, and Ginnie Mae (Government National Mortgage Association), which remained a government agency. The split was designed to remove Fannie Mae's activities from the federal budget. Fannie Mae's shares began trading on the New York Stock Exchange.

In 1970, Congress created Freddie Mac (Federal Home Loan Mortgage Corporation) as a competitor to Fannie Mae. Throughout the 1970s and 1980s, Fannie Mae pioneered the development of the secondary mortgage market, creating standardized mortgage documentation and underwriting guidelines. The company developed mortgage-backed securities, which allowed investors to purchase interests in pools of mortgages, dramatically increasing the flow of capital into the housing market.

In the 1990s and 2000s, Fannie Mae grew dramatically, expanding its mortgage portfolio and MBS guarantees to trillions of dollars. The company became one of the largest financial institutions in the world. However, this growth was accompanied by increasing risk-taking, particularly in the subprime and Alt-A mortgage markets.

In 2004, an accounting scandal revealed that Fannie Mae had manipulated its financial results to meet earnings targets and maximize executive bonuses. The company was required to restate several years of financial results and paid significant fines. The Office of Federal Housing Enterprise Oversight (OFHEO) identified numerous instances of accounting manipulation.

When the U.S. housing market collapsed in 2007 and 2008, Fannie Mae suffered massive losses on its mortgage portfolio and MBS guarantees. The company's capital was insufficient to absorb these losses. On September 7, 2008, the U.S. government placed Fannie Mae and Freddie Mac into conservatorship under the newly created Federal Housing Finance Agency (FHFA). The U.S. Treasury committed to providing financial support to ensure the companies' continued operations, receiving senior preferred stock in exchange.

Under conservatorship, Fannie Mae returned to profitability and has paid more than $180 billion in dividends to the U.S. Treasury on the senior preferred stock, exceeding the original Treasury investment. Despite these payments, the conservatorship remains in place, and the company's future structure is uncertain.

On January 2, 2025, FHFA and the U.S. Treasury entered into a letter agreement that modified the Senior Preferred Stock Purchase Agreement (SPSPA). The modifications added further restrictions on Fannie Mae's ability to exit conservatorship without prior Treasury consent. Previously, FHFA could terminate the conservatorship if certain conditions were met, including resolution of pending litigation and sufficient capital levels. The January 2025 amendment removed this provision, requiring Treasury's prior written consent for termination of conservatorship in all cases except a mandatory receivership. The agreement also committed FHFA to conduct a public market impact assessment prior to any termination of conservatorship.

On March 17, 2025, FHFA removed several members of Fannie Mae's Board of Directors and appointed new directors, including William J. Pulte as Chairman. Pulte, whose grandfather founded PulteGroup (one of the country's largest homebuilders), was confirmed as Director of FHFA. As of March 17, 2025, the FHFA Director serves as Chair of Fannie Mae's Board, and FHFA's General Counsel also serves as a board member. On February 3, 2026, FHFA re-elected all current board members.

The Trump administration has expressed interest in ending the conservatorship of Fannie Mae and Freddie Mac, potentially through an IPO. In June 2026, President Trump stated that he had not ruled out an IPO for the GSEs but added, "It's not a rush." The administration's decision to give Bill Pulte a second role as acting Director of National Intelligence, while retaining his FHFA position, has introduced additional uncertainty about the timeline for conservatorship exit.

Priscilla Almodovar has served as CEO since December 2022, succeeding Hugh Frater. Almodovar previously served as President and CEO of New York State Homes and Community Renewal.

Fannie Mae's sustainability and ethics efforts focus on housing accessibility, environmental responsibility, and fair lending practices. The company's mission is to advance equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America.

Fannie Mae's HomeReady mortgage product supports affordable homeownership for low- and moderate-income borrowers, with down payments as low as 3% and flexible funding sources. The company's multifamily financing supports the development and preservation of affordable rental housing across the United States.

On environmental responsibility, Fannie Mae has implemented programs to encourage energy-efficient housing. The HomeStyle Energy mortgage allows borrowers to finance energy-efficient improvements as part of their mortgage. The company has also issued green MBS products tied to energy-efficient multifamily properties.

Fannie Mae does not hold B Corp certification. As a GSE under conservatorship, the company's sustainability disclosures are governed by FHFA requirements and are included in its annual reports and SEC filings. The company publishes an ESG report with data on housing access, environmental initiatives, and social impact.

Fannie Mae has received recognition for its role in the U.S. housing finance system and its technology initiatives.

• Fortune 500 Ranking: Fannie Mae is consistently ranked among the largest companies in the Fortune 500, reflecting its significant role in the U.S. financial system and its substantial revenue and asset base.
• Desktop Underwriter (DU): Fannie Mae's automated underwriting system is recognized as a major innovation in mortgage technology, processing millions of loan applications annually and establishing industry standards for automated underwriting.
• Credit Risk Transfer Innovation: Fannie Mae's Connecticut Avenue Securities (CAS) program has been recognized in the structured finance industry as a pioneering approach to transferring mortgage credit risk from taxpayers to private investors.
• Affordable Housing Leadership: Fannie Mae has been recognized for its commitment to affordable housing through HomeReady, multifamily financing, and community development programs.

Fannie Mae has been at the center of several major controversies throughout its history.

2008 Conservatorship

The conservatorship was the most significant event in Fannie Mae's history, resulting from the company's excessive risk-taking in the subprime and Alt-A mortgage markets. When the U.S. housing market collapsed in 2007 and 2008, Fannie Mae suffered massive losses. The government bailout committed up to $200 billion in financial support (later made unlimited) to ensure the company's continued operations. Fannie Mae has since paid more than $180 billion in dividends to the Treasury, exceeding the original support, though the conservatorship remains in place 18 years later.

2004 Accounting Scandal

Before the financial crisis, Fannie Mae was embroiled in an accounting scandal that revealed the company had manipulated its financial results to meet earnings targets and maximize executive bonuses. The company was required to restate several years of financial results, and regulators identified numerous instances of accounting manipulation. Fannie Mae paid significant fines and its reputation for financial integrity was damaged.

Ongoing Conservatorship Debate

The conservatorship has been controversial since its inception. Some argue that Fannie Mae should be privatized or restructured to reduce taxpayer risk and increase market efficiency. Others argue that the current structure provides important stability to the housing market and that privatization could increase mortgage costs for consumers. Various reform proposals have been debated in Congress over the past 18 years, but none have been enacted into law.

The January 2025 letter agreement between FHFA and Treasury further restricted the conditions under which Fannie Mae could exit conservatorship, requiring Treasury's prior written consent in all cases except mandatory receivership. This agreement also committed FHFA to conduct a public market impact assessment before any termination, including a public request for information and a briefing to the Financial Stability Oversight Council.

Shareholder Litigation

Shareholders who held Fannie Mae stock before the conservatorship have pursued legal action against the government, arguing that the terms of the conservatorship, particularly the 2012 amendment that swept all net worth to Treasury, unfairly deprived them of the value of their shares. These lawsuits have been ongoing for more than a decade with mixed results.

Trump Administration and Conservatorship Exit

The Trump administration has expressed interest in ending the conservatorship, potentially through an IPO. FHFA Director Bill Pulte, confirmed in 2025, has been tasked with overseeing this process. However, the administration's decision to also appoint Pulte as acting Director of National Intelligence in 2025 has raised questions about the priority and timeline for GSE reform. In June 2026, President Trump stated that he had not ruled out an IPO but added, "It's not a rush." Senator Elizabeth Warren and other lawmakers have raised concerns about potential conflicts of interest and the market impact of a premature exit from conservatorship.

Systemic Risk

The concentration of mortgage market risk in two GSEs (Fannie Mae and Freddie Mac) creates systemic risk concerns. Together, the two companies guarantee approximately 70% of new U.S. mortgage originations. Any disruption to their operations could have severe consequences for the U.S. housing market and the broader financial system.