2023

Annual 

Housing 

Activities 

Report
2023 at a glance

Stability

Over 226,000

First-time prospective homebuyers completed 

our HomeView® course and earned their 

certificate of completion

Over 9,000 

Counseling sessions supported to help people 

stay in their homes after disaster or hardship

382,384

First-time homebuyers 

helped to purchase a home

1.5M

Home purchases, 

refinances, and 

rental units enabled 

189,439

Very low- and low-income 

homebuyers helped to 

purchase a home

Over

2,200

Potential homebuyers 

approved-eligible 

due to positive rent 

payment history

317,032

Rental units affordable 

to very low- and lowincome families financed

Over 380,000

Renters participated in the multifamily 

positive rent payment pilot

Affordability

$369B

Provided in liquidity 

to the single-family 

and multifamily 

mortgage markets 

$8.9B

In Multifamily and 

Single-Family Green 

MBS issued

Liquidity

984,000

Single-family purchase and refinance loans acquired

482,000

Multifamily units 

financed

$11.2B

In Multifamily Social 

MBS issued

© 2024 Fannie Mae Annual Housing Activities Report 2023 2
Today, our mission is to advance equitable and sustainable 

access to homeownership and quality affordable rental housing 

across America. Fannie Mae supports the housing market 

by purchasing and guaranteeing mortgage loans made by 

lenders and issuing mortgage-backed securities (MBS), backed 

by those mortgage loans, that attract global investors. These 

activities help to enable affordable housing for individuals 

and communities. 

This report describes a wide range of activities and our 

accomplishments in 2023 to provide leadership in creating 

housing opportunities that are affordable and stable. This 

report also highlights our annual housing activities and 

performance on the housing goals established by the Federal 

Housing Finance Agency (FHFA).

This past year, low- and moderate-income families faced 

challenges in the housing market, including an ongoing 

high interest rate environment, elevated housing prices, and 

a continuing shortage of affordable homes for purchase 

or rent. Fannie Mae continued to provide liquidity to help 

maintain affordability in the overall housing market, while 

supporting responsible lending. We also focused on research 

and developing solutions to help build a more equitable and 

sustainable housing experience for renters, homebuyers, and 

homeowners nationwide.

In this report, you will learn how Fannie Mae works to: 

• Provide housing affordability by offering programs, 

products, and tools designed to help people secure 

affordable and stable housing. 

• Support housing stability for more families to stay in their 

homes by providing homeownership and rental education, 

maintaining sustainable and inclusive credit standards, and 

offering foreclosure prevention options. 

• Enable a stable source of liquidity for mortgage lending 

to help increase access to affordable homeownership and 

rental housing. 

We are proud of the work described in this report and the 

people and partners who are advancing our shared goals. Most 

of all, we are inspired by the opportunity to serve America’s 

renters and homeowners.

Fannie Mae was founded in 1938 with 

the public purpose of encouraging 

homeownership in the United States. Over the 

years, we have continuously sought to expand 

housing opportunities. 

Introduction

Annual Housing Activities Report 2023 3
About 

Fannie Mae

Single-Family

Our Single-Family business helps homebuyers purchase and 

refinance homes with one to four units. We support mortgage 

lenders by acquiring the mortgage loans they originate. We 

package loans we acquire into MBS, providing credit guarantees 

that attract investors to the U.S. secondary mortgage market. 

Our financing solutions enable lenders to offer 30-year 

fixed-rate mortgages, which provide homeowners stable, 

predictable mortgage payments over the life of their loans. 

We develop and maintain underwriting, eligibility, and risk 

management standards for Fannie Mae loans through Desktop 

Underwriter® (DU®), our industry-leading underwriting 

system. We also establish servicing standards, including 

borrower assistance options for homeowners experiencing 

financial distress.

Multifamily

Our Multifamily business supports the availability of affordable 

rental housing in all markets across the country. We work 

with multifamily lenders to provide funds to the mortgage 

market primarily by securitizing multifamily mortgage loans 

acquired from these lenders into Fannie Mae MBS, which are 

sold to investors or dealers. We also purchase multifamily 

mortgage loans and provide credit enhancement for bonds 

issued by state and local housing finance authorities to finance 

multifamily housing, and we invest in Low-Income Housing 

Tax Credit (LIHTC) multifamily projects to help support and 

preserve the supply of affordable housing. 

The Federal National Mortgage Association, better 

known as Fannie Mae, has a unique and vital role 

in the mortgage finance system. By purchasing 

mortgages from lenders, we provide liquidity 

to make stable mortgage financing accessible 

to more borrowers. In 2023, Fannie Mae helped 

finance approximately 1.5 million home purchases, 

refinancings, and rental units. 

We work with many partners, including mortgage 

lenders and servicers, housing counselors, real 

estate agents, nonprofits, and other industry 

professionals to help people obtain a home and 

stay in that home when faced with hardship 

or disaster.

Fannie Mae’s work is focused on two types 

of housing. 

Annual Housing Activities Report 2023 4
About this document

In the sections that follow, we provide our response to 

the 11 requirements set forth in the Fannie Mae Charter 

Act (12 U.S.C. § 1723a(n)(2)(A) through (K)). We grouped 

our responses by their alignment to three foundational 

pillars of our mission — Affordability, Stability, and 

Liquidity. Footnotes at the start of each section specify 

which Charter Act requirement is being addressed. The 

Index at the end of this document also specifies which 

sections address particular Charter Act requirements. 

Table of

contents

Housing Affordability 6

Our programs and products support affordable housing 6

Our affordable housing goals 8

We serve low- and moderate-income families 

across the country 10

We provide access to first-time homebuyers 12

We lower barriers to housing for low- and moderateincome and underserved households 13

We partner across the industry to expand access to 

affordable housing 18

Housing Stability 20

Our responsible underwriting promotes 

housing stability 20

We support stable housing for renters and borrowers 21

We partner across the industry to promote 

housing stability 23

We keep people in their homes during hardship 25

Trends in delinquency and default rates of 

mortgages secured by housing for low- and 

moderate-income families 26

Liquidity 29

Our business supports liquidity in mortgage markets 29

We support diverse business partners 31

We leverage public programs to provide liquidity 

to the market 32

Deep dive into multifamily housing market trends 33

Index 36

Annual Housing Activities Report 2023 5
Our programs and products support affordable housing 

To support housing affordability, Fannie Mae works to 

understand and address the barriers renters and homeowners 

face when renting or buying a home. We offer products, 

programs, and tools designed to responsibly expand access 

to mortgage financing for low-income borrowers and 

underserved communities.

Single-Family

Homeownership can seem out of reach for many people for a 

variety of reasons. Common challenges include burdensome 

up-front housing costs, limited or no formal credit history, 

lack of familiarity with the process of buying a home, and 

competition for a limited supply of quality affordable housing. 

Fannie Mae has a suite of programs and products designed 

to assist creditworthy first-time homebuyers and very low- to 

moderate-income borrowers by offering lower down payment 

options and more affordable pricing. 

• HomeReady®: An affordable lending product designed to 

help our lender partners serve more very low- and lowincome borrowers, with expanded eligibility for financing 

properties in low-income communities. Benefits include 

the flexibility of a low down payment, decreased mortgage 

insurance coverage costs, and lower costs of borrowing.

• HFA PreferredTM: A product that enables participating 

housing finance agencies (HFAs) to offer loans to borrowers 

with up to 97% loan-to-value (LTV) ratios. HFA Preferred 

is ideal for borrowers who have limited funds for down 

payment and closing cost.

• Community Seconds®: A program authorized under 

Fannie Mae’s guidelines that enables a subordinate 

mortgage financed by an HFA, a nonprofit, or certain other 

community organizations, to be used in conjunction with a 

first mortgage sold to Fannie Mae. 

Housing 

Affordability

Expanding access to housing affordability is central to our mission. Learn about our goals, solutions, and 

dedication to creating industry partnerships that help serve the housing needs of low- and moderateincome households across the country. 

We use the term “affordable” in multiple contexts in this report and when gauging the extent to which our financing is 

supporting housing that is affordable for low- to moderate-income renters and homeowners. When addressing the needs 

of renters, we consider either rental cost or rent restrictions reported at mortgage origination. For homeowners, we use 

household income as an indicator of affordability. To account for variations in regional costs of living and incomes, we 

standardize how we talk about household income by categorizing incomes relative to area median income (AMI).

6
• Manufactured housing (MH Advantage®, standard MH):

Manufactured housing (MH) serves as a significant source of 

affordable housing available to low- and moderate-income 

borrowers. Fannie Mae offers conventional financing 

for a range of MH properties. Fannie Mae’s standard MH 

program covers traditional single-width and multi-width MH 

properties. Our MH Advantage program offers financing on 

specially designated MH homes that feature characteristics 

similar to site-built homes. Under the MH Advantage 

program, qualifying borrowers can finance up to 97% LTV.

• Standard 97% LTV: A fixed-rate product designed for first 

time homebuyers that offers 97% LTV, which is ideal for 

borrowers who have limited funds for down payment.

• Refinancing: A set of products that allows borrowers to 

reduce monthly payments, build equity faster, renovate their 

homes, or find more stability if they have an adjustable-rate 

loan. Fannie Mae has a suite of options that can be used for 

refinancing, including RefiNowTM, HomeReady, HomeStyle® 

Renovation, and HomeStyle® Energy. 

Multifamily

The scarce supply of affordable rental units is one of the 

primary challenges to housing affordability for renters, resulting 

in competition for available units and some renters stuck in 

high-cost or low-quality housing. 

Fannie Mae is focused on supporting the preservation, 

rehabilitation, and creation of more affordable rental housing. 

We develop products that incentivize preservation of affordable 

units for low- and very-low-income households. We also 

support the development and preservation of housing in the 

underserved MH and rural markets, and our products and 

programs reflect our commitment to these markets.

• Preserving affordable multifamily rental units: 

Fannie Mae takes an active role in preserving and improving 

affordable housing for low-income renters. We work to 

make it easier for lenders to finance the preservation of 

rental housing by providing standardized, consistent, and 

scalable multifamily financing products, as well as flexible, 

tailored products that accommodate innovative and 

affordability-generating financing structures. 

• Low-Income Housing Tax Credit (LIHTC): The federal 

LIHTC program supports the development of affordable 

rental housing for low- and very low-income households. 

Fannie Mae makes equity investments in LIHTC properties. 

Refer to the Liquidity section for additional information. 

• Sponsor-Initiated Affordability (SIA): Fannie Mae’s SIA 

program seeks to address the gap in affordable housing 

supply, offering a pricing incentive for multifamily borrowers 

to voluntarily set aside at least 20% of units for households 

with income less than 80% of AMI through the life of the 

Fannie Mae loan. With SIA, Fannie Mae provides toolkits and 

guidance for property owners, offering an entry point for 

those who are new to the domain of housing affordability 

and a loan-level compliance framework for borrowers.

• Sponsor-Dedicated Workforce (SDW): Launched in 2023, 

Fannie Mae’s SDW program serves conventional workforce 

housing providers. SDW provides a pricing incentive to 

owners willing, for the life of the loan, to keep rent on at 

least 20% of units at levels affordable to renters earning up 

to 80% of AMI (or up to 120% in certain high-cost areas). 

• Expanded Housing Choice (EHC) initiative: Fannie Mae’s 

EHC pilot program offers new and innovative ways to fulfill 

our commitment to increasing access to affordable housing 

for renters. Our EHC voucher pricing incentive provides 

lower cost of finance for property owners who accept U.S. 

Department of Housing and Urban Development (HUD) 

Housing Choice Vouchers as a source of income in North 

Carolina and Texas, widening the housing options available 

to voucher holders.

Fannie Mae’s financing 

for Multifamily Affordable 

Housing (MAH)1 totaled 

$6.6 billion in 2023.

1 MAH includes properties with a minimum level of rent- or income-restricted units, 

properties receiving federal and state subsidies, properties with rent or income 

restrictions that meet a special public purpose, and properties eligible for SIA. 

For more information, refer to MAH Property Eligibility in our Selling and 

Servicing Guide. 

Annual Housing Activities Report 2023 7
Our affordable housing goals2

Housing goals

Fannie Mae is required by statute and regulation to meet certain 

housing goals, which are established by FHFA in accordance 

with the Federal Housing Enterprises Financial Safety and 

Soundness Act of 1992, as amended.3

 In October 2023, FHFA 

determined that we met all of our 2022 single-family and 

multifamily housing goals.

Single-family housing goals

For single-family goals, our acquisitions are measured annually 

against the lower of benchmarks set in advance by FHFA or 

the level of goal-eligible originations in the primary mortgage 

market as determined by FHFA using data submitted by lenders 

under the Home Mortgage Disclosure Act (HMDA).4

 The singlefamily benchmarks are expressed as a percentage of the total 

number of goal-eligible single-family mortgages acquired by 

Fannie Mae each year. 

In October 2023, FHFA determined that we met all of our 2022 

single-family housing goals. Despite the challenging housing 

market, we believe we met all the benchmarks set by FHFA 

for our 2023 single-family housing goals, except for the lowincome and very low-income home purchase goals. We are 

in compliance with the single-family housing goals if we meet 

either the benchmarks or market share measures, so we may 

still meet these latter two goals as well. FHFA will make a final 

determination regarding our 2023 single-family housing goals 

performance later in the year, after the release of data reported 

under the HMDA. 

While mortgage rates have pulled back from the peak of almost 

8% seen in October 2023, affordability remains significantly 

constrained. As measured by the share of median household 

income needed to purchase a median-priced home with a 

30-year fixed-rate mortgage, the current period of housing 

affordability is at the worst level in over two decades. 

Affordability challenges have impacted low- and very lowincome households the most. In 2021, approximately 18% 

of low-income households and 11% of very low-income 

households were able to afford principal and interest payments 

on a target home (versus 30% of overall renter households), 

based on Fannie Mae’s internal estimates using American 

Community Survey data.5

 By 2023, these figures dropped 

to only 2.3% for low-income household and 0.5% for very 

low-income households, an 88% and 96% respective decline 

relative to 2021.6

 2023 estimates assume on average mortgage 

rate of 6.81% and holding median housing values and renter 

household income constant compared to 2022.

2 12 U.S.C. § 1723a(n)(2)(A): “include, in aggregate form and by appropriate category, 

statements of the dollar volume and number of mortgages on owner-occupied and 

rental properties purchased which relate to each of the annual housing goals.”

3 12 U.S.C. §§ 4501 et seq.; see also 12 U.S.C. §§ 1331-1333 (housing goals).

4 12 U.S.C. §§ 2801 et seq.

5 These estimates show the share of renter households who have the household 

income to afford principal and interest payments on a target home at the corebased statistical area (CBSA) median home value for all renters, 80% of CBSA 

median home value for low-income renters, and 65% of CBSA median home 

value for very low-income renters. The assumptions also include a 30- year fixedrate mortgage with the specified note rate, 80% loan-to-value, and a maximum 

principal and interest payment-to-income ratio of 20%.

6 For 2022 home values; this analysis assumes CBSA-level house value appreciation 

from 2021 Q4 to 2022 Q4 sourced from the FHFA all-transactions house price index 

(not seasonally adjusted). 2021 ACS renter household income is also adjusted by 

the change in CBSA-level median household income from 2021 to 2022, sourced 

from the ACS 1-year summary files.

2023 single-family qualifying very low- and 

low-income purchase money mortgages: 

189,439 mortgages acquired, 

$39.9 billion unpaid 

principal balance (UPB)

2023 single-family qualifying very low-income 

purchase money mortgages:

43,792 mortgages acquired, 

$6.3 billion UPB

PERCENT OF INCOME SPENT ON MORTGAGE PAYMENTS*

Annual Housing Activities Report 2023 8
The table below displays more information about our 2023 

multifamily housing goals and our results against these goals.

The table below displays more information about our 2023 

single-family housing goals and our results against these goals.

Multifamily housing goals

Our multifamily housing goals for 2022 were established as a 

fixed number of units to be financed. For 2023 through 2024, 

our multifamily housing goals are based on the percentage 

share of the goal-eligible units rather than on the number 

of units in our annual multifamily loan acquisitions that are 

affordable to each income category. 

In October 2023, FHFA determined that we met all of our 

2022 multifamily housing goals. We believe we also met all 

of our 2023 multifamily housing goals. FHFA will make a final 

determination regarding our 2023 multifamily housing goals 

performance later in the year. 

Multifamily Housing Goals 2023 Goal 2023 Result

Low-Income Goal13 61% 76.3%

Very Low-Income Subgoal14 12% 18.7%

Small Multifamily (5 – 50 units) 

Low-Income Subgoal15 2.5% 3.2%

Multifamily qualifying very low- and 

low-income purchases:

317,032 units financed;

$31.3 billion UPB

Multifamily qualifying very low-income purchases:

77,509 units financed; 

$6.1 billion UPB

The dollar volume and number of mortgages on owneroccupied and rental properties purchased that relate to each 

of the housing goals are set forth in Tables 1A and 1B of the 

Annual Mortgage Report (AMR).16

Single-Family 

Housing Goals

2023 FHFA 

Benchmark

2023 

Single-Family 

Market Level

2023 

Result

Low-Income Home 

Purchase Goal7 28% TBD by FHFA 26.1%

Very Low-Income 

Home Purchase Goal8 7% TBD by FHFA 6.0%

Low-Income Areas 

Home Purchase Goal9 20% TBD by FHFA 28.1%

Minority Census 

Tracts Subgoal10 10% TBD by FHFA 12.6%

Low-Income Census 

Tracts Subgoal11 4% TBD by FHFA 9.3%

Low-Income 

Refinancing Goal12 26% TBD by FHFA 38.4%

7 Home purchase mortgages on single-family, owner-occupied properties to borrowers with incomes no greater than 80% of AMI.

8 Home purchase mortgages on single-family, owner-occupied properties to borrowers with incomes no greater than 50% of AMI.

9 The sum of (a) mortgages meeting the criteria for the minority census tracts subgoal, (b) mortgages meeting the criteria for the low-income census tracts subgoal, and (c) home 

purchase mortgages on single-family, owner-occupied properties to borrowers with incomes no greater than 100% of AMI who are located in federally-declared disaster areas. 

FHFA sets the low-income areas home purchase goal benchmark annually. 

10 Home purchase mortgages on single-family, owner-occupied properties to borrowers with incomes no greater than 100% of AMI in minority census tracts.

11 (i) Home purchase mortgages on single-family, owner-occupied properties to borrowers (regardless of income) in low-income census tracts that are not minority census tracts, 

and (ii) home purchase mortgages on single-family, owner-occupied properties to borrowers with incomes greater than 100% of AMI in low-income census tracts that are also 

minority census tracts. Low-income census tracts are those where the median income is no greater than 80% of AMI.

12 Refinancing mortgages on single-family, owner-occupied properties to borrowers with incomes no greater than 80% of AMI.

13 Affordable to low-income families, defined as families with incomes no greater than 80% of AMI.

14 Affordable to very low-income families, defined as families with incomes no greater than 50% of AMI.

15 Units in small multifamily properties (defined as properties with 5 to 50 units) affordable to low-income families.

16 The AMR is provided pursuant to 12 U.S.C. § 1723a(m).

Annual Housing Activities Report 2023 9
We serve low- and moderate-income families across 

the country17

Fannie Mae seeks to be in all markets across the U.S. at all 

times. The factors that affect the distribution of our mortgage 

acquisitions include housing density in individual markets 

and local economic conditions in those markets. In 2023, 

Fannie Mae helped finance approximately 1.5 million home 

purchases, refinancings, and rental units. A substantial portion 

of the loans we purchase support borrowers and renters with 

incomes at or below AMI. 

Over 40% of the single-family loans we acquired in 2023 were 

made to borrowers whose incomes were at or below AMI, and 

over 95% of the multifamily units we financed in 2023 that were 

potentially eligible for housing goals credit were affordable 

to renters whose incomes were at or below 120% of AMI. The 

distribution of these borrowers and renters by geography and 

other factors are represented in the maps and charts below.

AMR TABLE 10A: DISTRIBUTION OF FANNIE MAE’S SINGLEFAMILY OWNER-OCCUPIED MORTGAGE PURCHASES BY 

STATE AND TERRITORY

AMR TABLE 10B: DISTRIBUTION OF FANNIE MAE’S 

MULTIFAMILY MORTGAGE PURCHASES BY STATE 

AND TERRITORY

17 12 U.S.C. § 1723a(n)(2)(B): “include, in aggregate form and by appropriate category, statements of the number of families served by [Fannie Mae], the income class, race, and 

gender of homebuyers served, the income class of tenants of rental housing (to the extent such information is available), the characteristics of census tracts, and the geographic 

distribution of the housing financed.”

12 U.S.C. § 1723a(n)(2)(E): “include, in aggregate form and by appropriate category, the data provided to the [FHFA] under subsection (m)(1)(B) [i.e., the LTV ratios of purchased 

mortgages at the time of origination].”

Qualifying 

Low-Income 

Purchase Money 

Mortgages

Qualifying Very 

Low-Income 

Purchase Money 

Mortgages

Qualifying 

Low-Income Area 

Purchase Money 

Mortgages

Qualifying 

Low-Income 

Refinance

Mortgages

Total Purchase 

Money 

Mortgages 

Acquired

Total Refinance 

Mortgages 

Acquired

Total

Mortgages 

Acquired

Income More Than 120% of 

Median Income

Income More Than 100% But No 

More Than 120% of Median Income

Income More Than 80% But No 

More Than 100% of Median Income

Income More Than 60% But No 

More Than 80% of Median Income

Income More Than 50% But No 

More Than 60% of Median Income

Income No More Than 50% of 

Median Income

0%

20%

40%

60%

80%

100%

23.1%

21.5%

55.4%

100.0%

12.7%

11.1%

27.6%

25.3%

16.5%

44.4%

5.9% 13.0% 7.1%

6.0%

14.6%

13.7%

46.3%

12.3%

8.1%

16.8%

14.8%

35.5%

11.8%

5.5%

14.1%

13.5%

48.6%

12.4%

34.2%

21.4%

6.9%

AMR TABLE 2: DISTRIBUTION OF SINGLE-FAMILY OWNER-OCCUPIED MORTGAGES BY INCOME CLASS OF MORTGAGOR(S)

19 91,265 0 64,663

Annual Housing Activities Report 2023 10
Affordable at More Than 120% of 

Median Income

Affordable at More Than 100% 

but No More Than 120% of 

Median Income

Affordable at More Than 80% but No 

More Than 100% of Median Income

Affordable at More Than 60% but No 

More Than 80% of Median Income

Affordable at More Than 50% but No 

More Than 60% of Median Income

Affordable at More Than 30% but No 

More Than 50% of Median Income

Affordable at No More Than 30% of 

Median Income

0%

20%

40%

60%

80%

100%

Qualifying Very Total Units Financed

Low-Income Purchase

Qualifying Low-Income

Purchase

26.0%

19.0%

5.5%

49.6%

77.5%

22.5%

19.8%

4.1%

14.4%

14.1%

5.2%

4.2%

37.7%

95%<LTV<=100%

90%<LTV<=95%

80%<LTV<=90%

60%<LTV<=80%

0%<LTV<=60%

0%

20%

40%

60%

80%

100%

Total Refinance Total Acquired

Mortgages

Acquired

Total Purchase

Money

Mortgages

Actuired

Qualifying 

Low-Income

Refinance

Mortgages

Qualifying 

Low-Income 

Area Purchase

Mortgages

Qualifying Very

Low-Income 

Purchase

Mortgages

Qualifying

Low-Income

Purchase

Mortgages

32.7%

19.4%

17.1%

13.4%

17.4%

31.4%

18.6%

24.6%

11.7%

13.8%

33.2%

16.7%

12.4%

15.3%

22.4%

1.0%

0.4%

1.0%

2.1%

72.2%

26.4%

38.9%

10.0%

13.7%

16.4%

21.0%

60.9%

36.0%

13.9%

22.0%

38.4%

17.5%

8.2%

AMR TABLE 3A: DISTRIBUTION OF RENTAL UNITS FINANCED BY MULTIFAMILY MORTGAGES IN 2023, 

BY AFFORDABILITY OF RENT

AMR TABLE 11: DISTRIBUTION OF SINGLE-FAMILY OWNER-OCCUPIED MORTGAGE PURCHASES BY LTV CATEGORY 

AMR Table 11 provides the LTV ratios of single-family mortgages on owner-occupied properties purchased by Fannie Mae.

The income class, race, and gender of homebuyers served, the characteristics of the census tracts, and the geographic distribution 

of the housing financed are set forth in more detail on AMR Tables 2, 3A, 3B, 4, 5A, 6, 7, 8A, 8B, 9, 10A, 10B, and 10C.

Fannie Mae’s low down payment products, such as HomeReady and HFA Preferred, help enable very low- and low-income 

borrowers to purchase homes.

Annual Housing Activities Report 2023 11
We provide access to 

first-time homebuyers18

Our efforts, including those described in the next section, 

supported over 380,000 first-time homebuyers to purchase a 

home in 2023, representing more than 45% of our single-family 

mortgage acquisitions.19

The special programs and products facilitating homeownership 

opportunities for first-time homebuyers in 2023 included 

the following:

18 12 U.S.C. § 1723a(n)(2)(D): "include statements of the proportion of mortgages on 

housing consisting of 1 to 4 dwelling units purchased by [Fannie Mae] that have 

been made to first-time homebuyers, as soon as providing such data is practicable, 

and identifying any special programs (or revisions to conventional practices) 

facilitating homeownership opportunities for first-time homebuyers.”

19 Fannie Mae has relied on information provided by lenders to identify units 

occupied by first-time homebuyers. Fannie Mae’s Single-Family Selling Guide 

provides that a first-time homebuyer is an individual who (1) is purchasing the 

security property; (2) will reside in the security property as a principal residence; 

and (3) had no ownership interest (sole or joint) in a residential property during 

the three-year period preceding the date of the purchase of the security property. 

In addition, an individual who is a displaced homemaker or single parent also will 

be considered a first-time homebuyer if he or she had no ownership interest in a 

principal residence (other than a joint ownership interest with a spouse) during the 

preceding three-year time period.

20 This standard mortgage product allows LTV ratios up to a maximum of 97% for 

purchase transactions if at least one borrower is a first-time homebuyer.

Programs and Products Percentage of Mortgages Made 

to First-Time Homebuyers

HomeReady 72.19%

HFA Preferred 91.82%

Standard 97% LTV20 100.00%

Non-HFA Community Seconds 93.08%

Our efforts supported over 380,000 firsttime homebuyers to purchase a home in 

2023, representing more than 45% of our 

single-family mortgage acquisitions.

Annual Housing Activities Report 2023 12
We lower barriers to housing for low- and moderate-income 

and underserved households21

There are many obstacles facing people who want to buy 

a home — especially low- and moderate-income families. 

Fannie Mae is committed to helping knock down these 

barriers through updated policies and technological 

innovation to provide access to credit while maintaining 

strong underwriting criteria.

Initiatives to address the obstacle of 

limited credit history

Fannie Mae’s Single-Family Positive Rent Payment History 

(PRPH) program opens doors for first-time homebuyers to 

reach the goal of homeownership while maintaining our 

credit standards. Single-Family PRPH enables lenders, with 

applicant’s permission, to incorporate up to 12 months of 

PRPH in their mortgage credit evaluation process through 

automated analysis of bank statements. On-time monthly 

rent payments are considered to improve eligibility; records 

of missed or inconsistent rent payments do not negatively 

affect the applicant’s ability to qualify for a loan eligible for 

sale to Fannie Mae. Lender usage of PRPH within Fannie Mae’s 

automated underwriting system, DU®, has grown steadily. 

We rolled out our self-employed income calculator, a tool 

that helps lenders easily and accurately calculate income for 

self-employed borrowers. With Fannie Mae’s income calculator, 

lenders can:

• Increase certainty of loan quality;

• Serve more qualified homebuyers with confidence; and 

• Maximize qualifying income for borrowers.

21 12 U.S.C. § 1723a(n)(2)(G): “assess underwriting standards, business practices, repurchase requirements, pricing, fees, and procedures that affect the purchase of mortgages 

for low- and moderate-income families, or that may yield disparate results based on the race of the borrower, including revisions thereto to promote affordable housing or 

fair lending.”

22 This represents the number of applications that were deemed eligible for sale to Fannie Mae as a result of PRPH when they otherwise would not have been eligible. 

Of the applicants who provided optional 

protected class information, over 50%

self-identify as minorities. 

In 2023, 

over 2,200

DU® case files benefited from PRPH.22

Fannie Mae’s innovative technology that gives lenders the ability to consider a borrower’s positive rent 

payment history is helping long-time renters like Kyle achieve homeownership. Watch Kyle’s story on 

how his consistent rent payments helped him qualify for a mortgage and purchase a home that he and 

his teenage son could finally make their own.

Annual Housing Activities Report 2023 13
23 Rent reporting is one component of a consumer's credit score. Positive rent 

payment reporting does not guarantee an increase in credit score.

24 Fannie Mae will facilitate the adoption of and pay for 12 months of rent payment 

reporting for eligible multifamily borrowers, through the end of 2024. 

We continued to increase the adoption of the 

Multifamily Positive Rent Payment (MF PRP) pilot, 

which allows eligible multifamily property owners 

to more easily share timely rent payment data to 

the three major credit bureaus for incorporation in a 

renter’s credit profile. 

DU innovations: a journey to more 

equitable mortgage standards

In 2023, Fannie Mae introduced changes to our mortgage

standards, including in DU®, to responsibly increase access 

to credit.

• 2- to 4-unit residential properties: We increased the 

maximum LTV ratio on loans for certain owner-occupied 

2- to 4-unit homes. Single-family homes that consist of 2 to 

4 units are one of the most stable and affordable sources of 

rental housing in many U.S. cities. By increasing the eligible 

LTV ratios for loans on these properties, we are reducing 

the up-front costs (by way of smaller down payments) for 

creditworthy borrowers. This helps to create and preserve 

affordable housing, while also empowering more borrowers 

to own income-producing properties.

• Number of borrowers on a mortgage loan: We also recently 

removed the “number of borrowers” as a risk factor in 

DU®. Historically, having one borrower on a loan was an 

important predictor of higher risk; however, thanks to 

advancements in DU's ability to assess risk using additional 

data sources, we no longer consider this a risk factor due to 

advances in our ability to predict risk using other factors. In 

the last 20 years, the number of homeowners and potential 

homeowners who are single heads of households has 

grown substantially, and this change helps us better serve 

this population while appropriately managing risk.

Refer to Fannie Mae’s website for Fannie Mae’s SingleFamily Selling Guide, Servicing Guide, and other 2023 

policy communications. 

According to our vendors, 

over 27,000

renters have established new credit scores,

and approximately

117,000

of renters have improved their credit scores 

since the program's inception.23

over 2,000 

properties were enrolled in the MF PRP pilot, with 

over 380,000 residents participating in the pilot.

In 2023, 

MF PRP will 

be extended 

through December 2024.24

Given its strong results, in 2023, we 

announced that the

Annual Housing Activities Report 2023 14
Initiatives to address the obstacle of 

burdensome up-front costs

Fannie Mae’s appraisal modernization initiative continues to 

explore new ways to make property valuation more accurate, 

more objective, and less costly. We continued to update 

our appraisal policies to encourage appraisal alternatives 

to reduce consumer costs in the homebuying process. In 

2023, Fannie Mae launched Value Acceptance + Property 

Data, an option that allows lenders to forgo an appraisal if 

they provide interior and exterior property data collection to 

verify property eligibility.

Fannie Mae continued to focus on ways to support homebuyers 

with solutions aimed at reducing homebuyer closing costs.

• Fannie Mae’s closing cost concessions (which help reduce 

out-of-pocket closing costs for the buyer) for low- and 

moderate-income purchasers of Fannie Mae real estate 

owned (REO) properties continued to grow. In 2023, more 

than 500 REO properties closed with the Fannie Mae’s 

concession. Since its inception in Q4 2021, Fannie Mae has 

provided over $4 million in closing cost assistance. 

• Fannie Mae expanded eligibility in the Selling Guide to 

permit Attorney Opinion Letters in lieu of a lender’s title 

policy on loans secured by condos and properties with 

restrictive covenants. 

Overall, we estimate that our efforts to modernize 

the home valuation process by using models and 

analytics that allow us to offer appraisal waivers 

and other less costly alternatives saved borrowers 

more than 

$88 million 

in up-front costs in 2023, including approximately 

$52 million for borrowers with incomes at or below 

120% of AMI.

We offer quarterly webinars on our MH financing 

options, with

over 950

attendees in 2023.

In 2023, Fannie Mae provided 

$2.4 billion

in liquidity to the single-family MH market.

Manufactured housing 

Fannie Mae markets a suite of MH loan options (MH Advantage®, 

standard MH, and single-wide MH). In May 2023, we improved 

our pricing for MH loans by waiving up-front risk-based fees 

for low-income borrowers. In addition, we have updated our 

comparable sales requirement for MH Advantage-eligible 

homes to require the use of site-built home sales when fewer 

than three MH Advantage comparable sales are available. 

This should facilitate more consumer sales of MH Advantageeligible homes. 

Annual Housing Activities Report 2023 15
Multi-year Equitable Housing Finance Plan 

Fannie Mae’s Equitable Housing Finance Plan outlines a 

series of actions we are taking to further our commitment 

to advancing equity in housing finance in a safe and sound 

manner in both our Single-Family and Multifamily businesses. 

We are developing and executing initiatives that are available 

to households regardless of their race to help address common 

barriers to housing and homeownership opportunities that 

are disproportionately confronted by historically underserved 

consumers, including Black and Latino renters, homebuyers, 

and homeowners. The Plan, now in its third year, seeks to 

help consumers who face four common obstacles: limited or 

no formal credit history; burdensome up-front housing costs; 

lack of financial resilience; and lack of property resilience. 

The actions in the Plan span the consumer housing journey

and cover a broad range of activities, including education 

and counseling, underwriting innovations, down payment 

assistance, credit-building, and housing industry diversification 

efforts. Fannie Mae’s first three-year Plan is the beginning of 

what we expect will be a multi-year effort, one that includes 

many partners and industry participants, to reduce housing 

disparities over time. 

Renting or buying:

Removing unnecessary 

obstacles in shopping for, 

acquiring, renting, or financing 

the purchase of a home. 

Housing preparation:

Helping consumers prepare early 

for sustainable homeownership 

and access to quality rental housing 

through establishing strong 

financial and credit foundations. 

Moving in and 

maintaining:

Improving the services that help 

sustain housing so that renters 

and homeowners can withstand 

disruptions or crises and remain 

stably housed. 

The Housing Journey

Annual Housing Activities Report 2023 16
by Fannie Mae’s Fair Lending Group under the direction of the 

Fair Lending Officer. The Fair Lending Group reviews new and 

ongoing policies and initiatives, such as policies that impact 

the eligibility of loans sold to Fannie Mae, mortgage servicing 

policies, appraisal guidelines, models, and marketing materials, 

not only for compliance with the Fair Lending Laws, but also 

with a view toward increasing equity in the home lending and 

rental markets. The group also conducts enterprise monitoring 

of fair lending risk as well as periodic testing and targeted 

reviews to evaluate fair lending compliance. The Fair Lending 

Group develops and delivers fair lending training to employees 

taking into consideration their job responsibilities and 

Fannie Mae’s fair lending risks. Fair lending is also covered as 

part of our enterprise-wide training provided to all employees.

Business Partner Code of Conduct

Our partners — from lenders and servicers who connect our 

financing with borrowers and renters, to those providing goods 

and services that support our employees — all play a vital role 

in helping us achieve our mission. For this reason, Fannie Mae 

has worked to develop a Business Partner Code of Conduct, 

which formally launched in April 2023. The code outlines 

Fannie Mae’s expectations for our business partners, setting out 

23 principles across four pillars: business ethics, diversity and 

inclusion, environmental sustainability, and equitable housing. 

It contains both required and aspirational practices and 

encompasses our partners’ interactions with their customers 

and next-tier suppliers.

Commitment to fair lending 

Fannie Mae complies with both the letter and spirit of 

applicable laws and regulations related to fair housing and 

lending (Fair Lending Laws). The Fair Lending Laws include 

the Equal Credit Opportunity Act25, the Fair Housing Act26, 

and the Federal Housing Enterprises Financial Safety and 

Soundness Act of 1992, as amended, and their implementing 

regulations, as well as similar state and local laws. These laws 

prohibit discrimination in housing and lending on the basis of 

certain characteristics. 

Fannie Mae operates in the secondary mortgage market and 

does not originate loans or lend money directly to borrowers 

or lenders. However, we require our lender partners, who lend 

money directly to borrowers, to comply with: 

• Our Selling Guides, which prescribe the requirements 

lenders must follow in order to sell loans to us.

• All federal, state, and local laws and regulations that apply 

to their origination practices, including the Fair Housing Act 

and the anti-discrimination provisions of the Equal Credit 

Opportunity Act.

• All other related state and federal regulations.

When selling single-family loans to Fannie Mae, lenders provide 

representations and warranties that assert their compliance 

with our Selling Guide and all applicable laws, including antidiscrimination laws and regulations. Thereafter, lenders must 

attest to us on an annual basis that they have policies and 

procedures in place, including regular training for employees 

and contractors, to facilitate and monitor compliance with 

these laws. Those who service loans for Fannie Mae are also 

required to abide by applicable laws and regulations dealing 

with loan servicing, as well as the provisions of our Servicing 

Guides. Multifamily has similar requirements.

In addition to the lender and servicer requirements related 

to compliance with Fair Housing Laws, Fannie Mae’s Fair 

Lending Program is designed to prevent, identify, measure, 

mitigate, and manage enterprise-wide fair lending risks. The 

program promotes fair and responsible housing practices on 

an enterprise-wide level, covering both Fannie Mae’s SingleFamily and Multifamily businesses, including underwriting 

standards, business practices, pricing policies, fee structures, 

and procedures. The Fair Lending Program is administered 

25 15 U.S.C. § 1691.

26 42 U.S.C. §§ 3601 et seq. 

Annual Housing Activities Report 2023 17
We partner across the industry to expand access to 

affordable housing27

Included below are some highlights of our 2023 

engagements with industry partners to make progress for 

underserved markets.

Partnering with HFAs to offer 

HFA Preferred

Fannie Mae continues to offer HFA Preferred, an affordable 

lending product available exclusively to eligible HFAs to serve 

very low- to moderate-income borrowers. The product has 

no upfront pricing requirement and allows reduced mortgage 

insurance coverage on conventional loans at or below 80% 

of AMI. 

Supporting California Housing Finance 

Agency (CalHFA) 

Fannie Mae collaborated with the CalHFA on the Dream For 

All Shared Appreciation Loan, a down payment assistance 

program for first-time homebuyers to be used in conjunction 

with the Dream For All Conventional First Mortgage loan for 

down payment and/or closing costs. In its first year, Fannie Mae 

acquired over 2,000 Dream For All loans.

Assisting or partnering with Affordable 

Housing Collaborative Initiative (AHCI)

In collaboration with the National Council of State Housing 

Agencies, we launched the AHCI in 2022. The purpose of the 

AHCI is to bring together industry experts to formulate potential 

solutions to confront the ongoing housing supply shortage. In 

2023, the AHCI group identified and developed four potential 

action items across the areas of accessory dwelling units, 

MH, builder production, and preservation/energy efficiency 

to pursue in 2024 that align with existing plans and areas of 

interest for Fannie Mae’s mission. 

Down payment assistance

Lack of funds for down payment and closing costs is a common 

barrier for low- to moderate-income borrowers qualifying for a 

loan and achieving homeownership. To overcome this barrier, 

Fannie Mae, in conjunction with its industry partners, continued 

to implement its multi-pronged down payment assistance 

(DPA) strategy initiated in 2022. 

• Fannie Mae continued its efforts to expand the availability 

of a special purpose credit program (SPCP) pilot - now 

branded as HomeReady® First - for first-time homebuyers. 

In 2023, Fannie Mae acquired over 5,600 SPCP loans and 

provided over $5 million to help HomeReady First borrowers 

fund down payment or closing costs. 

• Fannie Mae partnered with Freddie Mac and the state HFAs 

to create standardized subordinate lien documents to help 

introduce efficiencies in the DPA origination process. In 

2023, we rolled out the documents to 16 state HFAs.

• Fannie Mae coordinated with the HFA Solutions Team 

(HFAST) industry group and the National Council of State 

Housing Agencies to develop the HFA1 Lender Toolkit. HFA1 

is a successful milestone in helping lenders evaluate various 

DPA programs across multiple states by presenting their 

common features in one place on a matrix. 

27 12 U.S.C. § 1723a(n)(2)(K): “describe the activities undertaken by [Fannie Mae] with nonprofit and for-profit organizations and with state and local governments and housing 

finance agencies, including how [Fannie Mae’s] activities support the objectives of comprehensive housing affordable strategies under [section 105 of Cranston-Gonzalez 

National Affordable Housing Act].”

Over 25,000

HFA loans

23

Industry events

Over 70

State and local HFA relationships

Annual Housing Activities Report 2023 18
• In late 2022, Fannie Mae contracted with the organization 

Down Payment Resource to create a consumer search 

tool on fanniemae.com to help increase awareness 

of DPA programs. In 2023, we launched a national 

marketing campaign to promote the DPA tool. There were 

approximately 90,000 visits to the DPA search tool since 

its launch.

• Fannie Mae made numerous Selling Guide policy updates 

to simplify and enhance our DPA requirements in support 

of our selling and servicing partners and the consumers 

they serve. In March 2023, we extended the circumstances 

under which the borrower’s sweat equity may be used as 

a source for DPA. In April 2023, we permitted the use of 

the borrower’s earned real estate commission for down 

payment and closing costs. In May 2023, we updated the 

shared appreciation DPA program requirements; introduced 

new standards that promote consumer protection; clarified 

how repayment is made and aligned program requirements 

with industry standards. 

Shared equity

Community Land Trust programs and Income and Resale 

Price Restriction programs, sometimes referred to as “Below 

Market Rate” programs, provide opportunity to attain and 

sustain affordable homeownership through below market rate 

sales pricing coupled with pre- and post-purchase counseling, 

monitoring of property maintenance, and other supportive 

services. Fannie Mae published the Certified Shared Equity

Program List to a public-facing webpage and updated the 

Selling Guide to provide lender relief for certain programs on 

the List. 

Oweesta

Fannie Mae continued to partner with Oweesta Corporation, 

a Native community development financial institution (CDFI), 

to support the housing counseling services of their Native 

Housing Counseling Network. Oweesta’s mission is to provide 

opportunities for Native people to develop financial assets 

and create wealth. In 2023, over 1,300 Native households were 

served through housing counseling. 

Working with ROC USA to support 

resident-owned manufacturing 

housing communities

As part of our ongoing efforts to support non-traditionally 

owned MH communities, Fannie Mae continued its partnership 

in 2023 with National Cooperative Bank (NCB) and ROC 

USA, a non-profit organization helping residents purchase 

and manage their own MH communities throughout the 

nation. Through this relationship, Fannie Mae developed 

new outreach materials for resident cooperative boards and 

community technical assistance providers, advising them on 

Fannie Mae’s refinance options tailored for current market 

conditions. Developing and presenting direct-to-borrower 

materials will allow Fannie Mae, NCB and ROC USA to build on 

previous successes and continue to offer affordable financing 

to communities so that they may maintain the benefits of 

resident ownership.

Affordable Housing Advisory Council 

(AHAC) addresses housing inequities, 

affordable supply, and current 

market challenges

AHAC brings together leaders from various segments of the 

housing ecosystem to inform and identify ways to support 

the creation and sustainability of affordable housing. Council 

members represent a variety of perspectives, including 

for-profit and nonprofit organizations, single-family and 

multifamily lenders, public and private entities, academia, and 

housing policy organizations. Twice per year, the Council meets 

in person at Fannie Mae’s Midtown Center headquarters in 

Washington, DC, where we provide updates on key Fannie Mae 

initiatives and seek advice and counsel from our industry 

participants. Topics discussed in 2023 included innovations in 

housing, breaking down barriers to housing inequities, climate 

challenges, and managing the costs of purchasing a home. 

–Chrystel Cornelius, President & CEO of Oweesta Corporation

“If you want to go fast, go by yourself, 

but if you really want to make 

momentum, go slowly with friends.”

Through our partnership with the Oweesta

Corporation, Fannie Mae is addressing the 

lack of traditional mortgage financing for 

Native American borrowers.
Housing 

Stability

Our responsible underwriting promotes housing stability

Serving very low-, low-, and moderate-income households is a fundamental part of Fannie Mae’s mission, and we design 

our underwriting standards and business practices to help ensure that borrowers are prepared to meet the obligations of 

homeownership over the long term.

Single-Family

Fannie Mae’s Selling and Servicing Guides set out the current 

eligibility and ongoing administrative requirements for loans we 

can acquire. Lenders use DU® to determine whether a specific 

loan is eligible for sale to Fannie Mae. Using an automated 

underwriting system helps bring greater consistency for loans 

being sold to Fannie Mae, rather than having over a thousand 

lenders manually underwrite loans using the Guide standards. 

We regularly review and enhance our underwriting standards to 

best serve borrowers while appropriately addressing credit risk 

to reduce the risk of default.

Multifamily

Fannie Mae provides liquidity to the commercial mortgage 

market by acquiring multifamily loans primarily from its 

national network of DUS® lenders. The DUS program grants 

approved lenders the ability to underwrite, close, and sell 

loans on multifamily properties to Fannie Mae without prior 

Fannie Mae review. These DUS lenders must abide by rigorous 

credit and underwriting criteria, are subject to ongoing 

credit review and monitoring, and share the risk of loss if a 

loan defaults.

DU performs a comprehensive evaluation 

of the primary and contributory risk 

factors of a mortgage. 

DUS lenders generally retain a risk 

position in the loans that they sell 

to Fannie Mae.

In this section, we discuss how we help keep renters and borrowers in their homes and provide stability to 

markets in all times, in a safe and sound manner. Learn about our industry partnerships and how we work 

to support housing stability by investing in homeownership and financial education as well as working to 

prevent displacement and insecurity — and market disruption — when disasters strike.

Annual Housing Activities Report 2023 20
We support stable housing for renters and borrowers28

Homebuyer education 

Part of our role as an industry leader is to educate renters, 

homebuyers, and homeowners on what it takes to responsibly 

rent, buy, and own a home. 

Our vision is to deliver a continuum of educational resources, 

where multiple approaches at distinct points in an individual’s 

renting or homeownership journey can build upon each other 

for cumulative effect. 

HomeView® is Fannie Mae’s free online consumer-facing 

homebuyer education course. Our HomeView certificate 

aligns with National Industry Standards for Homeownership 

Education and Counseling, so it fulfills pre-purchase education 

requirements for most mortgage products, including low down 

payment loans such as HomeReady. Through this course, we 

are providing tools to make sure first-time homeowners are well 

prepared with the knowledge they need to be successful.

HomeView was designed to address misperceptions or a lack of 

knowledge about homebuying and the mortgage qualification 

process that discourage some renters from pursuing 

homeownership. Fannie Mae also partners with organizations 

that provide fundamental financial capability education and 

resources delivered early in participants’ financial life cycles. 

In addition to educating consumers, we are committed to 

educating our partners (e.g., lenders, real estate agents) across 

the industry on affordable lending products and policies.

28 12 U.S.C. § 1723a(n)(2)(G): “assess underwriting standards, business practices, repurchase requirements, pricing, fees, and procedures that affect the purchase of mortgages 

for low- and moderate-income families, or that may yield disparate results based on the race of the borrower, including revisions thereto to promote affordable housing or 

fair lending.”

HomeView and HomeView en Español 

certifications delivered:

Over 226,000

Introduced a new Spanish-language credit education 

course on the HomeView education platform:

“Strategies for 

Healthy Credit”

Diverse consumers (minorities, women, and/or 

people with a disability) engaged with through 

our educational marketing programs:

Over 25 million

15

training sessions held.

Over 3,000 

lenders, real estate professionals, and other 

stakeholders trained on Fannie Mae affordable 

mortgage products.

Annual Housing Activities Report 2023 21
Tenant protections

In 2023, Fannie Mae explored various strategies and 

actions to tackle challenges faced by renters during their 

housing journey. Addressing challenges to renter stability, 

affordability, access, and sustainable housing is central to 

our Multifamily mission.

Fannie Mae conducted research to understand the greatest 

pain points for renters and partnered with a wide range of 

industry stakeholders to develop a list of meaningful tenant 

protections for further evaluation. In 2024, we expect to 

work closely with Freddie Mac, FHFA, and our borrowers to 

create an approach for adoption.

Supporting housing stability and property resilience 

Aging housing stock is an issue facing cities, homeowners, and 

renters across the U.S., and too often leaves residents living 

in inadequate housing with homes in disrepair. To address 

this, Fannie Mae is partnering with entities like the Green and 

Healthy Homes Initiative (GHHI). In the city of Detroit, GHHI is 

leading an innovative housing repair model. It has developed 

the $20 million Detroit Home Repair Fund (DHRF) to address 

the widespread home repair needs that exist in the city due to 

its aging housing stock. While multiple funding programs in 

Detroit exist to help residents improve their homes for low or 

no cost, they are difficult to access, and the homes’ high-cost 

deferred maintenance needs can leave residents unable to tap 

into program funding. Through DHRF, GHHI helps homeowners 

access flexible funding and coordinates a cohort of community 

development organizations that work with residents to scope 

their home repair and efficiency needs. It helps to secure 

funding from existing programs and uses the DHRF to fill gaps 

while also coordinating contractors to complete improvements. 

As of late 2023, 200 participants were actively enrolled in the 

program, and the team has prepared 89 homes toward the 

fund’s goal of repairing 1,000 homes. There has been an array 

of repairs to roofs, porches, windows, and mold and asbestos 

remediation. The results are homeowners living in healthier, 

safer properties that are more secure and resilient. Through this 

partnership, Fannie Mae is learning best practices that can be 

shared and potentially replicated in other cities across the U.S. 

that are facing similar issues due to their aging housing stock.

Annual Housing Activities Report 2023 22
We partner across the 

industry to promote 

housing stability29

In our mission to promote housing stability, we partner across 

the industry to provide education and counseling to borrowers 

and renters, and programs and services to communities.

Local Initiative Support Corporation 

(LISC)

In 2023, Fannie Mae partnered with LISC to support Financial 

Opportunity Center® (FOC) sites in five markets. The selected 

FOC partners provided financial coaching services to 

approximately 2,400 low- to moderate-income clients across 

supported LISC markets. Outcomes included increased savings, 

credit score improvement and credit establishment, which 

support housing stability. 

Junior Achievement

To expand access to youth financial education with a 

focus on homeownership, Fannie Mae has partnered with 

Junior Achievement, a leading non-profit provider of K - 12 

educational resources dedicated to financial capabilities, 

work readiness, and entrepreneurship. In 2022, we adapted 

HomeView (Fannie Mae’s homebuyer education course) 

content to develop online learning modules with Junior 

Achievement, published on their JA Connect online platform, 

and co-developed a parent-focused take-home activity about 

homeownership and renting for first-grade Junior Achievement 

program participants. 

In 2023, our self-guided modules on JA Connect were 

an important part of our efforts to increase the financial 

capabilities of youth across the country. During the 2022 - 2023 

school year, more than 300,000 students were made aware of 

our modules via referral. 

29 12 U.S.C. § 1723a(n)(2)(K): “describe the activities undertaken by [Fannie Mae] 

with nonprofit and for-profit organizations and with state and local governments 

and housing finance agencies, including how [Fannie Mae’s] activities support the 

objectives of comprehensive housing affordable strategies under [section 105 of 

Cranston-Gonzalez National Affordable Housing Act].”

Over 9,000

sessions on default/foreclosure 

prevention, post-modification, or 

disaster recovery counseling.

Received over 

14,000 calls

to 855-HERE2HELP and other 

FannieMae/non-Fannie Mae channels.

Housing counseling 

sessions

Initiated 

over 11,000

disaster-related FLEX Modification 

Trial Starts.

Executed 

over 9,000

disaster-related FLEX 

Modification conversions.

Modifications related 

to disaster

Over 3 million

unique visitors to Fannie Mae’s 

consumer website. 

Approximately

6 million

engagements with educational content.

Fannie Mae mortgage 

and rent relief outreach
Partnering to deliver technical assistance 

to organizations working to preserve 

Section 515 properties

U.S. Department of Agriculture (USDA) Section 515 Rural 

Renting Housing Loans are a critical source of rental housing 

finance in rural areas, particularly for seniors, people with 

disabilities, and low-income renters. There is a crucial need 

to preserve properties with maturing Section 515 loans: once 

properties exit the program, they lose Rural Development 

affordability restrictions, and residents are no longer eligible to 

receive USDA rental assistance.

In addition to purchasing Section 515 loans, Fannie Mae 

partnered with both Enterprise Community Partners and the 

Housing Assistance Council to provide technical assistance 

to support organizations pursuing potential Section 515 

preservation activities. The path for owners to refinance or 

transfer 515 loans through USDA, thereby retaining rental 

assistance eligibility, is cumbersome and complex. Technical 

assistance is crucial to successfully preserving 515 properties, 

as it can support owners and potential buyers in navigating 

the process, delivering best practices and expert knowledge to 

organizations interested in preservation.

Community First by Fannie MaeTM buyers 

Fannie Mae believes that partnering with nonprofit and 

for-profit organizations and state and local governments will 

help to make a fairer and more stable housing industry. Our 

Community First program offers community-minded buyers, 

like nonprofits and public entities, exclusive access to view and 

make offers on Fannie Mae real estate owned properties before 

they become available to the public.

Fannie Mae approved 33 new Community First buyers, 

expanding buyer coverage to five new states. There are now 

Community First buyers in 48 states plus Puerto Rico, bringing 

the total number of Community First buyers to more than 300. 

Annual Housing Activities Report 2023 24
We keep people in their homes during hardship

Fannie Mae continued to help renters and homeowners in need 

to understand their relief options and stay in their homes. 

Fannie Mae’s loss mitigation strategy sets standards for 

timely resolution when borrowers experience financial 

distress. Our policies require servicers to intervene early to 

address mortgage loan delinquency and provide alternatives 

to foreclosure. First and foremost, the servicer is required 

to engage with the borrower on options for resolving the 

delinquency. The servicer is required to determine whether 

a borrower qualifies for a home retention solution before 

considering foreclosure or foreclosure alternatives. If no home 

retention solutions are viable, Fannie Mae works to avoid 

foreclosure. Pre-foreclosure sales (“short sales”) and deeds-inlieu of foreclosure are available options to minimize disruption 

to homeowners’ lives and damage to their credit histories. To 

promote consistency across servicers and improved outcomes 

for borrowers, Fannie Mae offers Servicing Management 

Default UnderwriterTM, an application that automates loss 

mitigation decisions.

Payment deferral policy enhancements

As a result of industry feedback and of lessons learned from 

the COVID-19 pandemic, as well as our efforts to ensure our 

retention workout options provide appropriate borrower 

assistance regardless of economic environment, we expanded 

our payment deferral policy to allow borrowers facing financial 

hardship to defer up to six months of mortgage payments. 

This enhancement promotes sustainable homeownership and 

further supports the safety and soundness of Fannie Mae. For 

more information, please refer to LL-2023-04.

Here2Help

Fannie Mae’s unified counseling brand, Here2Help (formerly 

the Disaster Response NetworkTM), successfully launched on our 

consumer website in April 2023, simplifying the user experience 

for consumers in crisis. Here2Help provides support for 

Fannie Mae borrowers experiencing financial distress and any 

borrower or renter experiencing the effects of a natural disaster. 

Fannie Mae extended access to post-modification counseling to 

borrowers who received a modification in the last 12 months, 

rather than six, increasing the potential number of borrowers 

referred to counseling by an average of 46%. 

Annual Housing Activities Report 2023 25
Trends in delinquency and default rates of mortgages 

secured by housing for low- and moderate-income families30

As of December 31, 2023, Fannie Mae’s single-family serious 

delinquency rate (SDQ) of 0.55% remained near historically 

low levels.

Fannie Mae’s underwriting standards support market stability 

by providing sustainable financing while promoting credit 

access for low- and moderate-income borrowers. The chart 

below reports 90-day delinquencies occurring within the first 

12 months of acquisition and defaults (defined as a foreclosure 

sale, deed-in-lieu of foreclosure, pre-foreclosure sale, or thirdparty sale, at any time during the life of the loan) on loans made 

to low- and moderate-income borrowers compared to loans 

made to borrowers with incomes above the median level, by 

acquisition year.31 This analysis is based on income relative to 

AMI and does not control for other risk dimensions, such as 

LTV ratio or credit history. In 2023, 90-day delinquency rates 

for both income groups dropped significantly from elevated 

levels experienced during the height of the COVID-19 pandemic. 

Information regarding serious delinquency and default 

performance is based on acquisitions through December 2022 

with loan performance reported through December 2023. 

30 12 U.S.C. § 1723a(n)(2)(I): “describe trends in the delinquency and default rates of 

mortgages secured by housing for low- and moderate-income families that have 

been purchased by [Fannie Mae], including a comparison of such trends with 

delinquency and default information for mortgage products serving households 

with incomes above the median level that have been purchased by [Fannie Mae], 

and evaluate the impact of such trends on the standards and levels of risk of 

mortgage products serving low- and moderate-income families.”

31 Since 2010, Fannie Mae no longer tracks single-family unit-level affordability data. 

To ensure consistency comparing loans from 2000 onward, this analysis is based 

upon borrowers’ income relative to AMI. Additionally, this analysis only pertains to 

owner-occupied principal residences.

For the first time in 17 years, Fannie Mae’s 

single-family SDQ loan count is

below 100,000.

Annual Housing Activities Report 2023 26
RELATIVE 90-DAY DELINQUENCY AND DEFAULT RATES BETWEEN SINGLE-FAMILY LOANS SERVING LOW- AND MODERATEINCOME FAMILIES AND LOANS SERVING FAMILIES WITH INCOME ABOVE THE MEDIAN LEVEL, BY YEAR32

Acquisition Year Income Group Average Rate of 90-day 

Delinquency (%) Percent Difference (%) Average Rate 

of Default (%) Percent Difference (%)

2012 Above Median Income 0.115 0.317

Low-Mod Income 0.267 132 0.905 186

2013 Above Median Income 0.108 0.299

Low-Mod Income 0.289 168 0.970 225

2014 Above Median Income 0.138 0.252

Low-Mod Income 0.329 138 0.818 225

2015 Above Median Income 0.108 0.129

Low-Mod Income 0.260 141 0.417 224

2016 Above Median Income 0.142 0.074

Low-Mod Income 0.274 94 0.281 278

2017 Above Median Income 0.423 0.075

Low-Mod Income 0.500 18 0.265 252

2018 Above Median Income 0.209 0.068

Low-Mod Income 0.420 101 0.224 230

2019 Above Median Income 2.607 0.022

Low-Mod Income 2.798 7 0.095 335

2020 Above Median Income 1.119 0.005

Low-Mod Income 1.337 19 0.028 411

2021 Above Median Income 0.325 0.005

Low-Mod Income 0.477 47 0.022 352

2022 Above Median Income 0.587 0.009

Low-Mod Income 0.685 17 0.016 85

32 Sample used: unseasoned, conforming, conventional, owner-occupied, first-lien, non-reverse mortgages, excluding Growing-Equity Mortgages, Graduated Payment Mortgages, 

and loans missing affordability data. During the period 2006 through and including 2008, acquisitions of mortgage loans to borrowers of all income categories had a higher risk 

of delinquency and default. In addition, the likelihood of 90-day delinquency percentages shown are static and only reflect if a loan went delinquent in the first year.

Annual Housing Activities Report 2023 27
Credit characteristics of our guaranty 

book of business

Effective risk management is essential to Fannie Mae’s ability 

to provide liquidity, stability, and access to credit to the U.S. 

housing market.

The overall credit characteristics of the Single-Family 

conventional guaranty book of business remained strong, with 

a weighted-average mark-to-market LTV ratio of 51% and a 

weighted-average FICO credit score at origination of 753 as of 

December 31, 2023.

While certain segments of the Multifamily market continued 

to be pressured by economic conditions, such as the high 

interest rate environment and declining commercial real estate 

valuations, the overall credit profile of our Multifamily book also 

remained strong. The average original LTV ratio of our book is 

63%, and the debt service coverage ratio33 (DSCR) is 2.

CREDIT CHARACTERISTICS OF MULTIFAMILY GUARANTY 

BOOK OF BUSINESS34

0.0

0.5

1.0

1.5

2.0

2.5

2019 2020 2021 2022 2023

Weighted-Average DSCR

Weighted-Average OLTV Ratio

1.9

66% 66% 65% 64% 63%

2.0

2.1 2.2

2.0

Weighted-Average DSCR Weighted-Average OLTV Ratio

0%

10%

20%

30%

40%

50%

60%

70%

CREDIT CHARACTERISTICS OF SINGLE-FAMILY 

CONVENTIONAL GUARANTY BOOK OF BUSINESS

Mark-to-Market Loan-to-Value Ratio35

0%

10%

20%

30%

40%

50%

60%

2019 2020 2021 2022 2023

Weighted-Average MTMLTV

57%

0.3%

0.1% 0.1% 0.1%

0%*

58%

54% 52% 51%

Weighted-Average MTMLTV % MTMLTV > 100%

0.0%

0.5%

1.0%

1.5%

2.0%

*Represents less than 0.05% of MTMLTV > 100%

FICO Credit Score36

0

200

400

600

800

2019 2020 2021 2022 2023

Weighted-Average FICO Credit Score

FICO Credit Score < 680

746

10.5%

9.0% 9.0% 8.1% 8.0%

750 753 752 753

Weighted-Average FICO Credit Score

% FICO Credit Score < 680

0%

5%

10%

15%

20%

25%

33 Debt Service Coverage Ratio refers to a ratio of net cash flow to the annualized debt service, which may include both principal and interest payments, of a multifamily property. 

34 The Multifamily guaranty book of business consists of: (a) multifamily mortgage loans of Fannie Mae; (b) multifamily mortgage loans underlying Fannie Mae MBS; and (c) other 

credit enhancements that the company provided on multifamily mortgage assets. It excludes non-Fannie Mae multifamily mortgage-related securities held in the retained 

mortgage portfolio for which Fannie Mae does not provide a guaranty. 

35 The average estimated mark-to-market LTV ratio is based on the unpaid principal balance of the loan divided by the estimated current value of the property at period end, which 

the company calculates using an internal valuation model that estimates periodic changes in home value. Excludes loans for which this information is not readily available. 

36 FICO credit score is as of loan origination, as reported by the seller of the mortgage loan. 

Annual Housing Activities Report 2023 28
Our business supports liquidity in mortgage markets37

We enable the flow of capital from investors to lenders for the 

purpose of financing residential housing. We do this principally 

by issuing Fannie Mae MBS that are readily traded in the capital 

markets. We create Fannie Mae MBS by placing mortgage 

loans in a trust and issuing securities that are backed by those 

mortgage loans. In a single-family “lender swap transaction,” 

a mortgage lender that operates in the primary mortgage 

market generally delivers a pool of mortgage loans to us in 

exchange for Fannie Mae MBS backed by these mortgage loans. 

In addition, Fannie Mae’s Single-Family Whole Loan Conduit 

purchases whole loans directly from small- and medium-sized 

single-family lenders and securitizes them. These securities 

may then be sold into the secondary market. The Whole Loan 

Conduit passes on Fannie Mae’s economies of scale to smaller 

lenders, thus leveling the playing field across the lender base. 

Our Multifamily business generally creates Multifamily 

Fannie Mae MBS in lender swap transactions in a manner 

similar to our Single-Family business.

Fannie Mae is a leading source of financing for residential mortgages in the U.S. We provide a reliable 

source of liquidity for mortgage lending to help increase access to affordable home and rental housing 

finance in all markets, at all times. Learn about the ways we support liquidity — including Green and Social 

Bonds, our support of diverse business partners, and our leverage of public programs.

Liquidity

37 12 U.S.C. § 1723a(n)(F): “Compare the level of securitization versus portfolio activity.”

Over 95% of the multifamily units we 

financed in 2023 that were potentially 

eligible for housing goals credit were 

affordable to those earning at or below 

120% AMI.

482,000 units 

of multifamily units financed.

Supported

805,000

home purchases and 179,000 refinancings.

$369 billion

in liquidity to the single-family and multifamily 

mortgage markets.

Annual Housing Activities Report 2023 29
Green and social bonds issued

Fannie Mae issues labeled Green and Social Bonds backed 

by either single-family or multifamily loans. These securities 

must conform with our Green and Social Bond Frameworks, 

which are generally aligned to global standards set forth in 

the International Capital Markets Association Green Bond 

Principles and Social Bond Principles. 

Single-Family Mission Index and Social 

Bond Framework

In 2022, we launched the Single-Family Social Index, an 

innovative disclosure solution that provides insights into the 

mission-oriented lending activities underlying our MBS while 

providing privacy protections for single-family borrowers. 

Since then, we have collected market feedback and, refined 

our methodology. In January 2024, Fannie Mae introduced 

updates to the disclosure, including a refreshed name: the 

Mission IndexTM. 

The updated Mission Index contains 10 criteria focusing on 

income, borrower, and property attributes. For example, the 

Index includes first-time homebuyers, low-income borrowers, 

affordable rental housing, borrowers residing in or purchasing 

homes in underserved markets, and MH properties. Read more 

about our Mission Index criteria and methodology.

In 2023, Fannie Mae worked closely with FHFA, Freddie Mac, 

and market participants to create an aligned Single-Family 

Social Bond Framework designed to promote mission-oriented 

lending while maintaining the health of the to-be-announced 

market for Fannie Mae- and Freddie Mac-issued securities and 

preserving borrower privacy. In January 2024, Fannie Mae 

announced its updated Social Bond Framework, which aligns 

to global standards and is validated by an independent second 

party opinion. 

The updated Social Bond Framework describes Fannie Mae 

mortgage collateral eligible to be pooled, issued, and labeled 

as Single-Family Social MBS. The Single-Family MBS that 

receive the Social label will be based on certain scores using 

the Mission Index disclosure. In line with labeled Social Bond 

practices, Fannie Mae will provide annual impact reporting 

to help the market understand the social impact of the loans 

underlying their investments. 

Total of

$7.5 billion 

in Multifamily Green MBS and 

$1.4 billion

in Single-Family Green MBS.

$11.2 billion

in Multifamily Social MBS and $641 million 

in Multifamily Social resecuritizations.

MISSION INDEX CRITERIA

Dimension Criteria

Income

Low-Income Borrower

Affordable Rental

Borrower

First-Time Homebuyer

Buyers in Underserved Markets

Special Purpose Credit Program Borrower

Property

Low-Income Census Tracts

Minority Tract

High-Needs Rural Areas

Designated Disaster Area

Manufactured Housing

Annual Housing Activities Report 2023 30
We support diverse business partners38

In our role providing liquidity to the mortgage market, 

Fannie Mae strives to maintain relationships with lenders 

that serve diverse populations — including geographically 

diverse segments — and to expand opportunities in the 

capital markets. 

The following table sets forth the volume of mortgages 

purchased in 2023 from lenders identified as minority- or 

women-owned, and community-oriented lenders.39

Single-Family

In 2023, we continued our engagement with single-family 

minority-owned lenders, collectively known as the Lender 

Diversity Council (LDC), to foster diversity and inclusion within 

the single-family lender network, consistent with the principles 

of equal opportunity contracting. Through the LDC, Fannie Mae 

provides tools and resources to eligible lenders to scale 

their businesses. 

Fannie Mae also supported community-oriented lenders 

through our partnerships with the American Credit Union 

Mortgage Association, The Mortgage Collaborative, and 

Lenders One.

In 2023, Fannie Mae significantly increased its engagement 

with real estate trade associations, including the Asian Real 

Estate Association of America and the National Association 

of Hispanic Real Estate Professionals, fostering relationships 

with industry partners and communities. This involved 

active participation in six national conferences and hosting a 

roundtable with real estate professionals to gather feedback 

on updates to our Equitable Housing Finance Plan. Fannie Mae 

collaborated on six appraiser diversity initiative workshops 

in various markets, working closely with local chapters to 

promote and enhance diversity in the appraisal field. These 

efforts align with Fannie Mae’s mission, focusing on outreach 

and engagement to provide knowledge on valuable resources 

and products. 

Multifamily

Multifamily undertook several initiatives in 2023 aimed at 

fostering diversity within our lender network, including: 

• Remaining actively involved with the DUS Diversity, Equity 

and Inclusion Subcommittee formed in conjunction with 

multifamily lenders. 

• Continuing to engage in efforts to identify diverse mortgage 

banking firms while encouraging our existing DUS partners 

to support business from diverse sponsors, and provide 

greater access to credit for underserved borrowers. 

While the value proposition remains, current market 

conditions have presented a challenging environment for 

new partnerships. 

ACCESS® program

Established in 1992, Fannie Mae’s ACCESS program fosters 

diversity within the capital markets. The program provides 

eligible broker-dealer members with opportunities to 

participate in Fannie Mae debt issuance, single-family and 

multifamily MBS trading, and credit risk transfer activities. 

Seller/Servicer Type Volume of Mortgages

Minority- or women-owned $14.96B

Women-owned $2.43B

Community-oriented lenders $90.38B

38 12 U.S.C. § 1723a(n)(2)(J): “describe in the aggregate the seller and servicer network of [Fannie Mae], including the volume of mortgages purchased from minority-owned, 

women-owned, and community-oriented lenders, and any efforts to facilitate relationships with such lenders.”

39 For these purposes, a “community-oriented lender” is defined as a financial institution with total assets of less than $1.564 billion as of Dec. 31, 2022. This definition parallels the 

definition of “small bank” under the implementing regulations of the Community Reinvestment Act (12 C.F.R. § 228.12).

55

multifamily primary 

market lenders

1,506

single-family primary 

market lenders

Annual Housing Activities Report 2023 31
Fannie Mae also provides liquidity to the market in conjunction 

with public subsidy programs. These programs include certain 

single-family and multifamily HUD- and Rural Housing Servicerelated programs and other government-insured and/or related 

programs; mortgages originated by HFAs that benefit from 

federal tax exemption; HFA mortgage revenue bond (MRB) 

issuance; and mortgages that benefit from low-income housing 

tax credits. Some loans may have been made in conjunction 

with more than one public subsidy program, which may result 

in a small amount of overlap.

We leverage public programs to provide liquidity 

to the market40

40 12 U.S.C. § 1723a(n)(2)(c): “include a statement of the extent to which the mortgages purchased by the Corporation have been used in conjunction with public subsidy programs 

under Federal law.”

HFAs

As noted earlier, Fannie Mae partners with state and local 

HFAs to offer HFA Preferred mortgages to support their MRB 

programs. HFAs issue tax-exempt and taxable MRBs and use 

the proceeds to finance low-cost mortgages for low-and 

moderate-income first-time homebuyers, or the production of 

rental apartments affordable to lower-income families. HFAs 

can also use MRBs to issue Mortgage Credit Certificates, which 

provide a nonrefundable federal income tax credit for part of 

the mortgage interest that qualified homebuyers pay each 

year. In combination with MRB programs, HFA Preferred is a 

powerful mortgage financing tool to further increase first-time 

homeownership and preserve affordability. 

LIHTC equity investments

Beyond our liquidity to the mortgage market, Fannie Mae also 

supports affordable housing through investments in LIHTC 

equity. The federal government’s LIHTC program encourages 

private equity investment in creating and preserving affordable 

rental housing for low- and very low-income households. 

Tax credits are awarded by each state to affordable housing 

developers who enter into partnerships with corporate 

investors, like Fannie Mae, that receive the credits in exchange 

for equity contributions to create or preserve affordable 

rental housing. The LIHTC program is currently a primary 

mechanism for subsidizing affordable housing production 

and rehabilitation in the U.S. Since re-entering the market in 

2018 Fannie Mae has committed approximately $4 billion in 

net equity to LIHTC investments. For 2024, FHFA has increased

our annual investment limit to $1 billion. FHFA requires that 

our investments above $500 million be in transactions FHFA 

has identified as having difficulty attracting investors. Further, 

FHFA requires that Fannie Mae make LIHTC investments only in 

projects that waive the qualified contract provision. 

Acquired 

over 5,000

single-family mortgages and

over 370

multifamily mortgages that were 

originated in conjunction with 

public subsidy programs. 

Aggregate UPB of 

approximately $1 billion and 

$6.6 billion, respectively. 

Annual Housing Activities Report 2023 32
Deep dive into multifamily housing market trends41

As described above, Fannie Mae provides liquidity to the 

multifamily market by guaranteeing MBS on multifamily 

properties. We aim to address the rental housing needs of a 

wide range of the population in markets across the country, 

with the majority of our focus on supporting rental housing that 

is affordable to households earning at or below the median 

income in their area. We serve the market at all times, rather 

than moving in and out depending on market conditions.

Over the past decade, the U.S. multifamily sector has benefited 

from solid demand, increasing rent growth, and low vacancies, 

due to favorable demographic trends, ongoing job growth, and 

continued renter household formations. 

However, that long-term trend has been interrupted since late 

2022. Multifamily rental growth is estimated to have turned 

negative during the fourth quarter of 2023, after growing at 

moderate levels earlier in the year. We accurately predicted 

turbulence in the multifamily market last year, and it appears 

that it is likely to continue into 2024. At a national level, rental 

demand remained positive for much of 2023 due to strongerthan-expected job growth, smaller-but-continued wage 

increases, elevated interest rates, and an overall shortage of 

housing, especially for-sale housing.

Based on preliminary third-party data, we estimate that the 

national multifamily vacancy rate for institutional investmenttype apartment properties increased to 6.0% as of December 

31, 2023, up 50 basis points from an estimated 5.5% vacancy 

rate as of December 31, 2022. The national multifamily vacancy 

rate remains near its average rate of about 5.8% over the last 

15 years. 

We believe that national rent growth turned negative at the 

end of 2023, declining by 0.67%. As a result, we estimate that 

annualized rent growth for 2023 was just 0.8%, below our 

expected range of between 1.0% and 2.0%, but in line with 

our expectations that fourth quarter would see negative rent 

growth, meaning that annualized rent growth would be at the 

low end of the range. 

Multifamily construction underway remains elevated. There 

are more than 1 million units underway and based on current 

completion trends we expect more than 500,000 units to 

be completed and delivered in 2023. We also expect new 

deliveries in 2024 will remain elevated and near 2023 levels.

41 12 U.S.C. § 1723a(n)(H): “Describe trends in both the primary and secondary multifamily housing mortgage markets, including a description of the progress made, and any 

factors impeding progress toward standardization and securitization of mortgage products for multifamily housing.”

Source: Fannie Mae Multifamily ESR.

ESTIMATED MULTIFAMILY RENT AND VACANCY

Annual Housing Activities Report 2023 33
According to the most recent data from MSI Real Assets, sales of 

multifamily properties valued at $2.5 million or greater totaled 

an estimated $119.0 billion during 2023, a significant decline 

from the $305.8 billion in sales that took place during the 

prior year, and well below the average of $175.5 billion in prepandemic sales transacted between 2017 - 2019.

Deal activity for the apartment sector was below pre-pandemic 

averages for the entire year. Volume in 2023 averaged $29.8 

billion per quarter, which lags the quarterly average of $41.7 

billion between 2017 - 2019. Estimated multifamily sales during 

Q4 2023 declined for the fourth consecutive quarter, as high 

interest rates continued to negatively impact buyers’ ability to 

conduct deals. This year marked the lowest volume transacted 

since 2014. 

As a result of declining transaction volumes, coupled with 

elevated interest rates, available data suggests that the average 

capitalization rate – the expected rate of return on a multifamily 

property – increased slightly in the fourth quarter of 2023 and is 

estimated to have increased by approximately 60 basis points 

year-over-year. 

This section contains a number of forward-looking statements, 

including statements regarding future economic and housing 

conditions, and the factors that will impact them. These 

forward-looking statements are based on the company’s 

current assumptions regarding numerous factors, and actual 

outcomes may be very different, perhaps materially, as a result 

of macroeconomic, market, and geopolitical issues, including 

the factors identified in our discussion. 

Source: MSCI Real Assets

ESTIMATED NATIONAL APARTMENT SALES VOLUME AND CAPITALIZATION RATES

Annual Housing Activities Report 2023 34
Issued

$53.1 billion

in Multifamily MBS, which 

accounted for over 99% of our 

Multifamily production.

Multifamily standardization 

and securitization

Over the past three decades, there has been a continual move 

toward standardization and more transparent disclosure 

in commercial real estate securitizations. Standardization 

of securitized financings and their associated disclosures 

promotes liquid trading in the capital markets. Transparent, 

liquid trading allows for the efficient origination and pricing 

of multifamily mortgage loans by market participants and the 

placement of those loans, as MBS, in the investor market. 

Fannie Mae’s DUS platform allows lenders to swap each 

multifamily loan for a standardized, tradeable MBS, which 

shares the characteristics of the underlying loan. Fannie Mae 

Multifamily MBS are predominantly single-loan securitizations 

that allow lenders to auction every MBS rate lock to multiple 

bidders. This allows for the best execution for borrowers and 

instantly transfers interest-rate risk to private capital at rate 

lock, with no aggregation risk for Fannie Mae or our lenders. 

Purchased

$3.9 billion 

of Multifamily MBS from our DUS 

lender network and sold $2.1 billion 

of Multifamily MBS pools. 

Issued

$1.7 billion 

of Multifamily structured securities 

through three Real Estate Mortgage 

Investment Conduit (REMIC) 

transactions as part of the Fannie Mae 

Guaranteed Multifamily Structures 

(Fannie Mae GeMSTM) program.

2023 standardization and 

securitization highlights:

$641 million

were Social GeMS backed by 

Multifamily Social MBS.

Annual Housing Activities Report 2023 35
Charter Act Requirement Section of 

Charter Act Location in document

Include, in aggregate form and by appropriate category, statements of the dollar volume and 

number of mortgages on owner-occupied and rental properties purchased which relate to 

each of the annual housing goals.

12 U.S.C. § 

1723a(n)(2)(A)

Affordability: Our affordable

housing goals

Include, in aggregate form and by appropriate category, statements of the number of 

families served by the corporation, the income class, race, and gender of homebuyers 

served, the income class of tenants of rental housing (to the extent such information is 

available), the characteristics of census tracts, and the geographic distribution of the 

housing financed.

12 U.S.C. § 

1723a(n)(2)(B)

Affordability: We serve low- and

moderate-income families across

the country

Include a statement of the extent to which the mortgages purchased by the Corporation 

have been used in conjunction with public subsidy programs under Federal law.

12 U.S.C. § 

1723a(n)(2)(C)

Liquidity: We leverage public 

programs to provide liquidity to

the market

Include statements of the proportion of mortgages on housing consisting of 1 to 4 dwelling 

units purchased by the corporation that have been made to first-time homebuyers, as soon 

as providing such data is practicable, and identifying any special programs (or revisions to 

conventional practices) facilitating homeownership opportunities for first-time homebuyers.

12 U.S.C. § 

1723a(n)(2)(D)

Affordability: We provide access to

first-time homebuyers

Include, in aggregate form and by appropriate category, the data provided to the [Director] 

under subsection (m)(1)(B) [i.e., the loan-to-value ratios of purchased mortgages at the time 

of origination].

12 U.S.C. § 

1723a(n)(2)(E)

Affordability: We serve low- and

moderate-income families across

the country

Compare the level of securitization versus portfolio activity. 12 U.S.C. § 

1723a(n)(2)(F)

Liquidity: Our business supports

liquidity in mortgage markets

Assess underwriting standards, business practices, repurchase requirements, pricing, fees, 

and procedures that affect the purchase of mortgages for low- and moderate-income 

families, or that may yield disparate results based on the race of the borrower, including 

revisions thereto to promote affordable housing or fair lending.

[Response for this Charter Act Requirement split between Affordability and Stability]

12 U.S.C. § 

1723a(n)(2)(G)

Affordability: We lower barriers

to housing for low- and

moderate-income and

underserved households

Stability: We support stable

housing for renters and borrowers

Describe trends in both the primary and secondary multifamily housing mortgage markets, 

including a description of the progress made, and any factors impeding progress toward 

standardization and securitization of mortgage products for multifamily housing.

12 U.S.C. § 

1723a(n)(2)(H)

Liquidity: Deep Dive into

multifamily housing market trends

Describe trends in the delinquency and default rates of mortgages secured by housing for 

low- and moderate-income families that have been purchased by the corporation of such 

trends with delinquency and default information for mortgage products serving households 

with incomes above the median level that have been purchased by the corporation, and 

evaluate the impact of such trends on the standards and levels of risk of mortgage products 

serving low- and moderate-income families.

12 U.S.C. § 

1723a(n)(2)(I)

Stability: Trends in delinquency

and default rates of mortgages by

housing for low- and moderateincome families

Describe in the aggregate the seller and servicer network of the corporation, including the 

volume of mortgages purchased from minority-owned, women-owned, and communityoriented lenders, and any efforts to facilitate relationships with such lenders.

12 U.S.C. § 

1723a(n)(2)(J)

Liquidity: We support diverse

business partners

Describe the activities undertaken by the corporation with nonprofit and for-profit 

organizations and with state and local governments and housing finance agencies, including 

how the corporation's activities support the objectives of comprehensive housing affordable 

strategies under section 105 of Cranston-Gonzalez National Affordable Housing Act.

[Response for this Charter Act Requirement split between Affordability and Stability]

12 U.S.C. § 

1723a(n)(2)(K)

Affordability: We partner across

the industry to expand access to

affordable housing

Stability: We partner across

the industry to promote

housing stability

Index

Annual Housing Activities Report 2023 36