Helping

Housing

Recover

A report on Fannie Mae’s mission performance

March 2010
Helping Housing Recover: A report on Fannie Mae’s mission performance 1

A message from 

Phil Laskawy, Chairman of the Board

Mike Williams, President and Chief Executive Officer

Fannie Mae’s historical mission is to provide liquidity, stability and affordability to the 

U.S. housing finance system, in all communities, under all economic conditions – in 

good times and especially in challenging times such as those we face today. 

In September 2008, the federal government placed the government-sponsored 

enterprises (GSEs) Fannie Mae and Freddie Mac into conservatorship and 

committed significant financial resources to their operations. These actions have 

enabled Fannie Mae to help millions of Americans buy, refinance and rent affordable 

housing in the midst of the worst housing downturn since the Great Depression. 

Working with our partners, we also helped borrowers avoid losing their homes to 

foreclosure and helped stabilize neighborhoods hurt by the housing crisis. These 

efforts are essential to bring about recovery in the housing market. 

We take our mission and mandate very seriously. Our 6,000-plus employees are 

focused on – and motivated by – the work we do to help struggling families and 

communities. 

Given the government’s unprecedented support for Fannie Mae, we feel it is 

appropriate to describe our efforts to support the market. This report covers our 

activities in 2009. 

Our efforts will continue as we work with our housing partners and the government

to restore the health of America’s housing market. 

Phil Laskawy Mike Williams 
Helping Housing Recover: A report on Fannie Mae’s mission performance 2

Helping Housing Recover

A report on Fannie Mae’s mission performance

March 2010

The government has provided significant financial assistance to the GSEs under 

conservatorship, underscoring the critical role we play in the recovery of the housing 

market and the economy as a whole. Through Fannie Mae, Freddie Mac and the 

Federal Housing Administration, families are able to get new mortgages, refinance 

existing mortgages or obtain affordable rental housing.

As other sources of liquidity have left the market, Fannie Mae has continued to 

buy or securitize mortgage loans originated by credit unions, community banks, 

commercial banks and other institutions. Many of these loans are packaged into 

mortgage-backed securities (MBS) and sold to investors. 

The U.S. Treasury and the Federal Reserve purchased our MBS to keep singlefamily mortgage rates affordable and help stabilize the housing market, resulting in 

interest rates for single-family loans at about 5 percent or below, among the lowest 

in history. 

Mortgage rates for multifamily loans, about 6 percent or below for 10-year loans 

during 2009, have also remained steady during the downturn through the stabilizing 

impact of Fannie Mae and Freddie Mac. This has helped assure adequate debt 

financing for rental housing.

In addition to providing financial support, the government has mandated that

Fannie Mae not only continue our day-to-day activities in support of the market, but 

also undertake extraordinary efforts to help bring about a housing recovery.
Helping Housing Recover: A report on Fannie Mae’s mission performance 3

Support for Markets 

Fannie Mae provided $823.6 billion in funding, or “liquidity,” to keep the singlefamily and multifamily mortgage markets operating during 2009. Fannie Mae was 

responsible for more than 40 percent of the mortgage-related securities issuances, 

which made funds available for people to buy and refinance homes. We also 

provided over 40 percent of financing for rental housing. 

Through this funding, Fannie Mae provided financing that helped: 

•	 600,000 borrowers buy homes during the tightest mortgage credit market

in decades, 

•	 2.5 million borrowers refinance into loans with lower payments, better terms or to

meet other needs, and many borrowers were able to refinance despite having lost 

equity, and

•	 Purchase, refinance or rehabilitate 372,000 rental units.

In addition, more than 160,000 borrowers with Fannie Mae-owned loans were able 

to keep their homes through loan modification or other loan assistance.

Support for Making Home Affordable 

In February 2009, the Administration announced the Making Home Affordable 

Program – the most aggressive housing relief effort in decades – and gave

Fannie Mae two distinct and central roles in the program:

•	 Loan modification: The U.S. Treasury appointed Fannie Mae as its agent to 

administer the Home Affordable Modification Program (HAMP). This program 

helps struggling borrowers – those whose loans are owned or securitized by 

Fannie Mae or Freddie Mac and those financed by other institutions – to modify 

their loans and avoid losing their homes to foreclosure.

•	 Loan refinancing: Under the Home Affordable Refinance Program (HARP), 

which is available to borrowers with GSE-owned or guaranteed loans, Fannie 

Mae offers many of our borrowers the opportunity to refinance into better loans, 

even if the value of their homes has declined to the point where they owe more 

than their homes are worth. Such low or negative equity normally is a barrier to 

refinancing. 

Serving 

Homeownership

In 2009, Fannie Mae provided:

$823.6 billion

in mortgage market 

liquidity

Mortgage funding for

3.1 million

borrowers

40 percent

of mortgage-related 

securities to fund 

home purchases and 

refinances
Helping Housing Recover: A report on Fannie Mae’s mission performance 4

I. Liquidity to Keep Financing Flowing 

Investor capital is essential to a functioning mortgage market. As home prices, 

home sales, housing starts and mortgage originations fell sharply during the 

housing downturn, many mortgage investors left the market. 

To help us support the market, Fannie Mae receives assistance from the U.S. 

government in three ways: 

•	 Funding commitment from the U.S. Treasury to support our net worth,

•	 U.S. Treasury and Federal Reserve programs to purchase GSE debt and MBS, and

•	 Availability of a U.S. Treasury credit facility (which was never used).

The purchase programs are set to be completed by March 31, 2010, and the

credit facility expired on December 31, 2009. (The funding commitment from the 

U.S. Treasury does not expire.)

With this infusion of financial support, Fannie Mae has been able to provide 

mortgage lenders with funds to lend to homebuyers, refinance loans and finance 

multifamily housing at affordable rates. 

Fannie Mae financing reaches the market through our three complementary 

businesses: Single-Family Mortgage Business, Housing and Community Development 

(Multifamily) and Capital Markets. Single-Family and Multifamily acquire mortgage 

loans from lenders and, in most cases, package them into Fannie Mae MBS. 

Stamped with our credit guaranty, the MBS become more marketable and thus 

support lower interest rates. Capital Markets serves as the interface between 

Fannie Mae and the open markets by issuing debt securities that are purchased by 

investors, which raises capital to fund housing and mortgage markets.

Financing for Homebuyers and Homeowners 

Fannie Mae’s role as a consistent provider of liquidity to the single-family mortgage 

market has contributed to a lower mortgage rate for 30-year fixed-rate conforming 

mortgages relative to “jumbo” mortgage loans (loans above our current $417,000

limit in most markets). During 2009, millions of borrowers took advantage of the 

lowest rates in 50 years to buy and refinance homes. As previously noted:

•	 Fannie Mae worked with more than 1,000 lender partners – customers large and

small – to provide financing for 600,000 borrowers to buy homes and for

2.5 million homeowners to refinance their loans. 

•	 Fannie Mae introduced “Refi Plus,” a streamlined refinancing process, in April

2009, which served 329,000 of our borrowers. 

Liquidity Results

With Fannie Mae financing

in 2009:

600,000

borrowers bought 

homes

2.5 million

borrowers refinanced

329,000

Fannie Mae borrowers 

used streamlined 

refinancing
Helping Housing Recover: A report on Fannie Mae’s mission performance 5

Support for Housing Finance Agencies

State and local housing finance agencies (HFAs) are one of the largest sources 

of affordable lending for working families to buy homes and to build and preserve 

affordable rental housing. Over the years, HFAs have served more than six million 

families. The agencies finance their lending primarily by issuing housing bonds for 

sale to investors. The financial crisis, however, disrupted HFAs’ access to investor 

capital, restricting their efforts.

In October 2009, the U.S. Treasury launched an initiative to return liquidity to the 

HFAs. Fannie Mae and Freddie Mac were asked to design and implement the HFA 

Initiative by the end of 2009. Fannie Mae’s long-standing partnership with HFAs 

enabled us to move quickly, mobilizing specialists from across the company to 

launch the $23.5 billion initiative in just 70 days. As a result:

•	 HFAs can access $15.3 billion in new tax-exempt capital available through U.S.

Treasury purchases, and leverage an additional $7.7 billion.

•	 HFAs can stabilize their balance sheets using $8.2 billion in new temporary credit

and liquidity facilities.

With funding provided through the HFA Initiative, HFAs are expected to help more 

than 200,000 households buy or rent affordable homes. Lending by HFAs in 2010 

could equal the peak years of 2006 and 2007. Fannie Mae also provided the HFAs

with access to $958 million for single-family lending in 2009 above and beyond the 

HFA Initiative. We also developed single-family affordable lending options tailored

for HFAs. 

Financing for Multifamily Rental Housing

As the multifamily rental market faced a challenging year in 2009, Fannie Mae 

remained the primary source of liquidity for multifamily borrowers. 

•	 We were responsible for over 40 percent of financing in the multifamily market —

more than any other private or government-sponsored enterprise. More than 80 

percent of this financing came through packaging and securitizing loans into MBS. 

•	 We provided $19.8 billion in permanent financing for the purchase, refinance or

rehabilitation of approximately 372,000 rental units. Of those, 87 percent were

affordable units for low- and moderate-income families. 

Fannie Mae helps stabilize multifamily interest rates as a consistent and reliable 

source of financing, which helps to create affordable rental housing even in 

challenging times.

Help for Smaller Lenders

The credit crunch has hit small and mid-sized lenders especially hard. Lines of credit 

have dried up and investors interested in buying loans are hard to find. Lack of 

credit leaves many lenders without funds to continue making loans to homebuyers.

Fannie Mae’s Capital Markets group offers options to smaller lenders to bolster their 

cash flow:

•	 We buy a lender’s whole loans, principally for the purpose of securitizing them.

We securitized about $83 billion in loans bought for cash in 2009. 

•	 We speed up access to funds so a lender receives quicker payment for loans

exchanged for Fannie Mae MBS. Our early funding totaled $103 billion in 2009.

HFA

Bond Initiative

Provides housing 

finance agencies with 

access to

$23.5 billion

to help

200,000

families buy or rent 

affordable homes

Help for

Smaller Lenders

$83 billion

in whole loans bought 

and securitized

$103 billion

in early funding

Multifamily 

Rental Housing

$19.8 billion

in Fannie Mae

financing in 2009 

372,000

rental units bought, 

refinanced or 

rehabilitated

87 percent

were affordable units
Helping Housing Recover: A report on Fannie Mae’s mission performance 6

II. Stability for Homeowners and Communities

The economic downturn that hurt families and communities all over the country 

affected Fannie Mae borrowers as well. We own or guarantee 18 million mortgages, 

about one in every four in America. About 5 percent of our borrowers were three 

months or more behind in their payments as of December 31, 2009. While our rate 

of serious delinquency is lower than the market as a whole, which is facing a serious 

delinquency rate of 10 percent, every default creates pain for the borrower and a 

financial loss for us. 

We work to help struggling families stay in their homes and avoid foreclosure, which 

reduces our credit losses and reduces the burden on the taxpayers who now fund 

our enterprise. Making Home Affordable (MHA) offers important tools: HAMP, the 

modification program, and HARP, which provides access to refinancing.

For borrowers unable to stay in their homes, we also offer options that help 

homeowners make a smooth transition to other housing.

Helping Troubled Borrowers 

Under the HAMP loan modification initiative, all loans owned or guaranteed by

Fannie Mae or Freddie Mac – as well as non-GSE loans handled by more than 100 

mortgage servicers participating in the program – must be evaluated to see if they 

are eligible for HAMP workouts before a foreclosure sale can occur.

The U.S. Treasury has reported that 902,000 borrowers started HAMP trial 

modifications in 2009. About 330,000 were Fannie Mae borrowers. Borrowers must 

successfully make modified payments for a trial period of at least three months 

before a permanent modification takes effect. According to the U.S. Treasury, about 

66,000 borrowers received permanent loan modifications. The median savings for 

the borrowers was more than $500 per month.

When a borrower with a Fannie Mae-owned loan does not qualify for HAMP, we offer 

other workout options through our servicers. In 2009, Fannie Mae provided more 

than 75,000 of our borrowers with non-HAMP modifications and helped another

62,000 borrowers keep their homes through repayment plans, payment forbearance 

or an unsecured personal loan used to bring the mortgage loan current. 

Stability Results

Modifications

in 2009

902,000

borrowers entered 

HAMP trial 

modifications

330,000

were Fannie Mae 

borrowers

66,000

borrowers received 

permanent HAMP 

modifications

$500

Median monthly 

payment reduction

More than

75,000

Fannie Mae borrowers 

received modifications 

outside HAMP

Other Assistance

62,000

Fannie Mae borrowers 

received repayment 

plans, unsecured 

personal loans or

loan forbearance
Helping Housing Recover: A report on Fannie Mae’s mission performance 7

Special Refinancing

Of the 2.5 million borrowers who refinanced their mortgages with Fannie Mae 

financing in 2009, 329,000 refinanced through our streamlined process, including 

104,000 Fannie Mae borrowers who refinanced through HARP. HARP borrowers, 

who had low or negative equity, reduced their payments by an average of $155 per 

month and a combined annual total of $190 million in mortgage payments. They also 

benefited from reduced mortgage insurance requirements.

We created an online loan look-up tool where borrowers can find out if Fannie Mae 

owns their loan, a key step in determining eligibility for HARP. About six million 

borrowers used the tool in 2009, which is available on fanniemae.com. 

Other Options for Fannie Mae Borrowers 

As more borrowers face longer-term economic hardships and negative home equity, 

there is a growing need for foreclosure alternatives for borrowers who cannot keep 

their homes. Fannie Mae offers our borrowers options that can help them avoid the 

foreclosure process even if they must give up their homes. In 2009, about 40,000 

borrowers took advantage of these options:

•	 Deed-for-Lease, introduced by Fannie Mae in 2009, gives borrowers who voluntarily

turn over the deed to their home the opportunity to rent that home for up to 

12 months. This allows families to complete the school year and plan for other 

housing.

•	 Deed-in-lieu of foreclosure offers borrowers the opportunity to voluntarily convey

the property to Fannie Mae and avoid the negative impact on their credit that 

would result from a foreclosure.

•	 Pre-foreclosure or “short” sale is an option for borrowers who must sell their

home and owe more than the home is worth. Servicers may elect to settle the 

mortgage debt for a lesser amount. This can reduce the impact of foreclosure on 

the borrower’s credit and financial situation. 

We continue to work on tools to ease the departure for borrowers when there are no 

other options to retain the property. 

Foreclosure 

Alternatives

40,000

Fannie Mae borrowers 

avoided foreclosure 

through short sales, 

deeds-in-lieu of 

foreclosure or

deeds-for-lease

Refinances

Under HARP in 2009:

104,000

Fannie Mae borrowers 

refinanced despite

low or negative equity

$190 million

Total annual amount 

saved by Fannie Mae 

borrowers

$155

Average monthly 

payment reduction

6 million

borrowers used online 

loan look-up tool
Helping Housing Recover: A report on Fannie Mae’s mission performance 8

Administering Home Affordable Modification Program

When the U.S. Treasury appointed Fannie Mae to administer HAMP, it gave us 

responsibility to help educate borrowers about the program, train and support 

servicers who modify the loans and provide reliable systems support and payment 

processing. 

Fannie Mae supported the U.S. Treasury’s campaign to reach struggling borrowers 

in 2009. We visited 20 cities hit hard by foreclosures, part of a 40-city effort that 

continues through 2010. On Treasury’s behalf, we held foreclosure prevention 

workshops where borrowers could meet with mortgage servicers and/or housing 

counselors approved by the U.S. Department of Housing and Urban Development 

(HUD) to learn about loan modification and other options to avoid foreclosure. 

More than 130,000 borrowers called the Fannie Mae Call Center with questions 

about MHA in 2009. To address the need for borrower information, we supported the

U.S. Treasury’s partnership with the Homeowner’s HOPE Hotline. Through the Hotline, 

borrowers can determine their basic eligibility for Making Home Affordable Program 

assistance and receive free HUD-approved housing counseling. That number is

888-995-HOPE.

Fannie Mae employees have volunteered to support borrower outreach efforts. Over 

1,000 employees volunteered days, nights and weekends at foreclosure prevention 

workshops or talked with distressed borrowers who called the Call Center. Members 

of our Hispanic Employee Resource Group helped Spanish-speaking borrowers. 

This was part of Fannie Mae’s overall volunteer effort in 2009, when nearly 2,500 

employees volunteered almost 33,000 hours to help nearly 300 organizations and 

schools in their communities.

While implementing a program of the unprecedented breadth of HAMP has been 

challenging, the number of homeowners receiving payment relief and converting 

from trial to permanent modifications continues to rise. 

Initially, many mortgage servicers lacked the capacity to modify large numbers 

of mortgages and to make trial modifications permanent. Many borrowers were 

not able to fulfill the modification terms in the trial stage or deliver the financial 

documents needed to complete the process. The U.S. Treasury provided guidance, 

implemented by Fannie Mae, to address these issues, which has included:

•	 Streamlining documentation requirements and providing temporary extensions

giving borrowers more time to complete and submit documents,

•	 Sending Fannie Mae loan specialists to work alongside mortgage servicers to

expedite modifications, and 

•	 Giving servicers rapid assistance through a dedicated Web site, a servicer call

center and a variety of training opportunities. 

Making Home 

Affordable

With Fannie Mae support

in 2009:

20 cities

visited to reach 

struggling borrowers

130,000

borrowers contacted

Fannie Mae Call Center

Fannie Mae 

Volunteers

33,000

volunteer hours in 2009

2,500

employees gave time 

and talent

300

organizations and 

schools were assisted

1,000

volunteered to help 

with foreclosure 

prevention efforts
Helping Housing Recover: A report on Fannie Mae’s mission performance 9

Maintaining Neighborhood Stability

Foreclosure prevention efforts are having an impact, yet some foreclosures are 

unavoidable. Fannie Mae seeks to stabilize neighborhoods by keeping the homes 

we acquire after foreclosure in good condition and putting them back into service as 

rapidly as possible. In 2009, we invested $182 million to make significant repairs to 

nearly 38,000 properties and another $267 million to maintain properties. We sold

more than 120,000 homes, including 82,000 to owner-occupants in 2009.

We have taken a variety of steps to put our properties back in use, including: 

•	 Launching HomePath.com where visitors can search more than 56,000 properties

by zip code and learn about special financing. The site is also available in Spanish.

•	 Creating “First Look,” a Fannie Mae initiative that offers an advantage to owneroccupants, public entities and nonprofit buyers who seek to purchase our 

properties. During the first 15 days a property is listed, we only consider offers 

from buyers who will use the homes as their primary residence or those who will 

use public programs to buy them. We consider offers from investors only after 

those initial 15 days. 

New Life for Foreclosed Homes

One option for getting foreclosed homes back into productive use is to turn them 

into affordable housing. The Neighborhood Stabilization Program (NSP), created by 

HUD, is a major funding source and ambitious effort to help public entities, nonprofits 

and other purchasers rehab and resell foreclosed properties and to provide down 

payment assistance to homebuyers. NSP grants totaling $6 billion are making that 

happen. 

Last year, Fannie Mae sold over 1,000 foreclosed homes to NSP and other publicly 

funded buyers. For example:

•	 The City of Milwaukee used NSP funds to purchase properties and provide

homebuyers with down payment assistance to buy Fannie Mae homes in targeted 

neighborhoods. 

•	 In Minneapolis/St. Paul, a multi-agency housing collaborative used NSP and other

funds to buy and rehabilitate 68 Fannie Mae homes for resale to homeowners. 

•	 In Cleveland, the Cuyahoga County Land Bank used NSP funds to buy 25

Fannie Mae homes. Twenty-four will be demolished to reduce the inventory of 

excess housing in the county. Fannie Mae contributed $3,500 per unit towards 

demolition costs.

Putting 

Foreclosed Homes 

to Work in 2009

$449 million

spent to repair and 

maintain properties

120,000

foreclosed homes sold

82,000

foreclosed homes sold

to owner-occupants

56,000

properties listed on 

HomePath.com

1,000

homes sold to buyers 

using NSP and other 

public funds
Helping Housing Recover: A report on Fannie Mae’s mission performance 10

Protecting Tenants Affected by Foreclosure 

When Fannie Mae acquires foreclosed homes used as rental properties, we try to 

ease the impact on tenants living in the homes as we prepare the homes for sale. 

Going beyond the requirements of the Protecting Tenants at Foreclosure Act of 2009, 

we offer eligible tenants the option of signing a new 12-month lease with Fannie Mae 

as well as relocation assistance at the end of the lease. 

Warning Homeowners About Foreclosure Scams

Scam artists prey on vulnerable borrowers with phony foreclosure “rescue” offers. 

Fannie Mae is teaming with NeighborWorks America, other non-profits, government 

agencies, Freddie Mac and the Lawyers’ Committee for Civil Rights Under Law to 

provide borrowers with information on how to recognize and report fraud through the 

LoanScamAlert.org and PreventLoanScams.org Web sites.

When Natural Disaster Threatens Stability 

Hurricanes Katrina and Rita ravaged the Gulf Coast five years ago, their winds and 

water leaving nearly 300,000 homes unlivable, destroying much of the region’s 

housing infrastructure. The local economy came to a virtual halt, and investment 

capital threatened to disappear from the housing market. In effect, nobody wanted to 

finance homes in the region. 

Fannie Mae’s mission to ensure funding under all economic conditions can be vital 

when catastrophic disaster strikes. After hurricanes Katrina and Rita devastated the 

region, Fannie Mae kept mortgage funds and affordable housing investment capital 

flowing to the communities. We also worked with our disaster partners, including the 

American Red Cross, to help stabilize neighborhoods and communities via grant and 

volunteer assistance.

Since 2005, we have provided more than $60 billion in financing for single-family 

mortgage loans and more than $4 billion in financing for multifamily rental apartments 

in the Gulf Coast. Five years later, Fannie Mae continues to be one of the largest 

sources of mortgage financing in the region. 

Disaster Response

Since the hurricanes of 2005, 

Fannie Mae has supported Gulf 

Coast rebuilding with:

$60 billion

in financing for 

homebuyers and 

homeowners

$4 billion

in financing for

rental apartments
Helping Housing Recover: A report on Fannie Mae’s mission performance 11

Fannie Mae’s responsibility is to provide financing that helps make it possible for 

Americans to buy or rent decent, affordable housing. In 2009, Fannie Mae supported 

lending that served more than 1.7 million low- and moderate-income families, more

than one million families living in underserved communities and nearly 760,000 very

low-income households. In accordance with our statutory housing goals, some loans 

were counted in more than one of these categories. 

We also provided affordable financing for specific housing needs, which helped make 

homebuying or refinancing possible for:

•	 232,000 families in rural counties,

•	 182,000 first-time buyers earning low- to moderate-incomes; including

modifications that helped these buyers retain their homes, 

•	 6,500 buyers of manufactured homes. After HUD, Fannie Mae is one of the

largest investors in loans for manufactured homes backed by real estate, and

•	 1,400 Native Americans purchasing homes on tribal lands. Fannie Mae is

virtually the only source of secondary financing for these loans, outside of HUD.

A team of Fannie Mae lending specialists focuses on housing opportunities for this 

community.

Eighty-seven percent of our multifamily rental housing financing served low- and 

moderate-income renters. Our financing supported production, preservation or 

rehabilitation of:

•	 31,000 units of rent-restricted housing for people earning 60 percent or less of

area median income,

•	 19,000 affordable rental apartments that might otherwise have been demolished

or converted to market-rate rentals, 

•	 11,000 rental apartments specifically designed for senior citizens, and

•	 1,700 units of public housing for families earning less than 30 percent of area

median income.

Preserving Rental Affordability

HUD’s Section 8 housing program provides rental subsidies that help more than 

1.4 million very low-income households afford privately owned rental housing. When 

Section 8 housing contracts expire, property owners can elect to raise rents to 

market rates. As part of our commitment to preserve affordable housing and in 

support of our government mandate, Fannie Mae is a significant source of financing 

to preserve Section 8 housing.

III. A Focus on Affordability 

Affordability 

Results

In 2009, Fannie Mae provided 

affordable financing that served:

1.7 million

low- and moderateincome families 

1.1 million

families in

underserved areas

760,000

very low-income 

families

232,000

families in rural 

counties

182,000

first-time buyers

6,500

families to buy

or refinance 

manufactured homes

Affordable Rentals

31,000

rent-restricted units

Preservation of

19,000

apartments 

Housing for

11,000 seniors 
Helping Housing Recover: A report on Fannie Mae’s mission performance 12

Affordable Housing Goals

Fannie Mae is required to meet affordable housing goals established for the

GSEs by our regulator, the Federal Housing Finance Agency (FHFA). In 2009,

the goals focused on affordable lending for (1) low- and moderate-income families,

(2) underserved areas, including certain urban neighborhoods and rural areas, and

(3) low-income families living in low-income areas and very low-income families,

a goal defined as “special affordable housing.” These goals also included subgoals.

FHFA recently proposed new affordable housing goals for 2010. Three single-family 

purchase money goals will cover mortgages affordable to low-income and very lowincome families and families in low-income areas. Other goals address single-family 

low-income refinance mortgages and mortgages that finance multifamily housing 

units affordable to low-income and very low-income families. The single-family goals 

will be percentage of business goals. The multifamily goals will be measured in units. 

New “Duty to Serve” Requirements

In addition to affordable housing goals, the Housing and Economic Recovery Act 

of 2008 requires the GSEs to provide market leadership in three specific areas – 

affordable housing preservation, manufactured housing and rural areas, effective in 

2010. Known as the “Duty to Serve Underserved Markets,” these are distinct from 

the affordable housing goals noted above. 

Supporting Sustainable Homeownership

One of the lessons learned from the housing crisis is that putting people in homes 

they cannot afford for the long term hurts the homeowner, the community and the 

housing market as a whole. 

In that light, Fannie Mae strengthened our underwriting standards in 2009 to help 

ensure that homeownership is successful and sustainable. We now require higher 

credit scores and a lower proportion of overall household debt.

While these stronger standards may mean that some aspiring homeowners are 

unable to obtain a Fannie Mae-backed mortgage right now, the company is striving 

to ensure that their path to sustainable homeownership is clear. We are joining with 

housing and personal finance counselors to provide homebuyers with information 

about successful homeownership. Fannie Mae offers free, Web-based information 

for housing counselors, lenders and mortgage brokers to help them help consumers 

understand and prepare for the mortgage loan process.
Helping Housing Recover: A report on Fannie Mae’s mission performance 13

Finding Solutions to Homelessness

For those who are homeless or risk losing their home, the economic crisis has been 

devastating. More families are facing financial hardship because of lost wages and 

other challenges, and sources of funding for much-needed affordable and supportive 

housing are becoming harder to find.

Fannie Mae has worked for many years to fund the development of permanent 

supportive housing and help end homelessness through our investments and 

fundraising. 

•	 In 2009, the Jericho Project, a New York-based nonprofit that provides housing

and supportive services for formerly homeless men and women, proceeded with 

construction of 132 housing units for homeless and low-income veterans and 

their families in the Bronx. The Jericho Project received financing through the

New York City Acquisition Fund, in which Fannie Mae has a $20 million, multi-year

commitment to help provide financing for supportive housing.

•	 Fannie Mae’s 22nd Annual Help the Homeless campaign, the nation’s largest

fundraising effort focused on homelessness, raised $5.8 million in 2009 for 134 

homeless service providers in the Washington, DC metropolitan area. More than 

117,000 people supported the effort by joining the Help the Homeless Walkathon

on the National Mall and taking part in 657 community “mini-walks.”

Fannie Mae’s

22nd Annual

Help the

Homeless

Program

$5.8 million

raised in 2009

117,000

supporters and 

participants

Proceeds helped

134

homeless service 

providers in 

Washington, DC area
Helping Housing Recover: A report on Fannie Mae’s mission performance 14

IV. Looking Ahead

As of this report, glimmers of recovery have begun to appear in the housing market. 

But most observers -- including Fannie Mae’s economics team -- caution that the 

market has a long way to go before it reaches stability. Millions of homeowners are 

behind on their mortgage payments and struggling to keep their homes. Funding is 

tight for rental housing construction and rehabilitation. Housing inventories remain 

high. Home prices continue to seek equilibrium. 

All of this means Fannie Mae has a lot of work to do to help put housing back on 

track. Our priorities for 2010 include helping homeowners keep their homes, putting 

empty homes back into service to stabilize neighborhoods, providing funds so that 

homeowners can refinance into better loans and helping mortgage lenders offer 

borrowers the financing they need to become homeowners. 

We appreciate the government’s support for our mission to provide liquidity, stability 

and affordability to the U.S. housing finance system, and we are committed to 

getting the job done.
3900 Wisconsin Avenue, NW

Washington, DC 20016-2892

© 2010, Fannie Mae w w w . f a n n i e m a e . c o m