Providing Transparency to the Market – Fannie Mae's Credit Risk Management Practices

FM Commentary

Providing Transparency to the Market – Fannie Mae’s Credit Risk Management Practices

Andrew Bon SalleFannie Mae is both the single largest residential mortgage credit investor and residential mortgage credit risk manager in the United States. As active managers of credit, we seek to control risk through the entire loan lifecycle to mitigate losses. We take a comprehensive and proactive risk management approach that focuses on strong lender, loan, and servicing quality.

As announced earlier this year, Fannie Mae plans on providing opportunities for financial institutions to invest in the credit performance of our single-family book of business through our risk sharing transactions.

On September 10, we updated Fannie Mae’s single-family loan-level performance dataset. The data are provided to promote better understanding of the credit performance of Fannie Mae mortgage loans and to help investors model the credit performance of loans owned or guaranteed by Fannie Mae in anticipation of future risk sharing transactions.

Through quarterly updates of single-family loan-level credit performance data, Fannie Mae continues to work to provide transparency to the market and help move the industry forward.

Andrew Bon Salle
Executive Vice President, Single-Family Underwriting, Pricing, and Capital Markets

September 18, 2013

Updated January 8, 2014

For more information, please visit our Credit Risk Sharing page.

The views expressed in these articles reflect the personal views of the authors, and do not necessarily reflect the views or policies of any other person, including Fannie Mae or its Conservator. Any figures or estimates included in an article are solely the responsibility of the author.

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