Introduction

In 2017, America’s affordable housing needs continued to 

evolve and come into sharper focus. New opportunities 

to expand access to affordable housing took shape, 

even as persistent challenges remained. Fannie Mae 

played, and continues to play, a leading role in meeting 

these challenges. We approached our affordable housing 

mission in the last year with adaptability, innovation, and 

a spirit of partnership – always with an eye towards the 

future needs of the housing market we serve.

In this report, we provide an assessment of Fannie 

Mae’s affordable housing activities in 2017. We outline 

the numerous ways in which Fannie Mae has sought to 

increase access to mortgage credit for qualified singlefamily borrowers as well as describe our work in financing 

multifamily properties that are affordable to low- and 

moderate-income renters. 

2017 Annual Housing Activities Report and

Annual Mortgage Report

© 2018 Fannie Mae. Trademarks of Fannie Mae.

MARCH 12, 2018

SUBMITTED TO:

THE FEDERAL HOUSING FINANCE AGENCY (FHFA)

THE COMMITTEE ON FINANCIAL SERVICES OF THE

UNITED STATES HOUSE OF REPRESENTATIVES

THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS

OF THE UNITED STATES SENATE

PURSUANT TO:

THE FEDERAL NATIONAL MORTGAGE ASSOCIATION

CHARTER ACT

Index

Structure of Fannie Mae's Housing Goals 6

Charter Act Requirements 9

Single-Family Activities 9

Multifamily Activities 22

Affordable Housing Partnerships 25

Other Charter Act Requirements 26

The Annual Mortgage Report (AMR) 29
© 2018 Fannie Mae. Trademarks of Fannie Mae. 2

2017 Annual Housing Activities Report and Annual Mortgage Report

Fannie Mae is bringing forward thinking to find solutions for the next generation of lenders, homeowners, and renters. 

This starts with a clear-eyed view of the markets we serve, a readiness to adapt and innovate, and a willingness to work in 

partnership with our customers and other stakeholders to create new housing opportunities for all Americans.

Housing Scarcity

Fannie Mae’s mission to enable and promote affordable housing has never been so urgent. Many communities in the 

United States face significant shortages of housing for low- and moderate-income homeowners and renters.

In the single-family market, the shortage of affordable homes is 

leaving families – particularly those buying homes for the first time 

– with fewer choices. The sale prices of homes at all price points 

have grown, but price increases for the smallest, most affordable 

homes have been most acute. 

Similarly, in many communities, the creation of rental units that are 

affordable to low- and moderate-income households has ground 

to a virtual standstill, stretching household budgets and adversely 

impacting savings. Rent growth outpaced real household wage 

growth for the last seven years.

The factors driving the lack of affordable housing supply are 

complex and multifaceted, with many outside of Fannie Mae’s 

ability to influence. At the same time, we understand that the 

central and vital role we play in the housing market calls us to 

work with customers, partners, and communities to find practical 

solutions that will allow more families access to affordable, 

sustainable housing. The following activities outline our recent 

efforts to meet that objective.

Expanding Eligibility, Enhancing Products

Improvements to HomeReady® – Fannie Mae’s low down-payment conventional loan product – simplified underwriting 

for lenders, allowing them to reach more qualifying very low- and low-income borrowers. In 2017, Fannie Mae increased 

the availability of HomeReady training for underwriters, loan officers, realtors, and community groups. We also continued 

a close collaboration with several of our lender customers to find and serve more very low- and low-income borrowers 

with HomeReady loans, including educational programs for first-time homebuyers in which lenders and non-profits work 

together to prepare borrowers for homeownership. These efforts have been successful, and deliveries of HomeReady 

increased from about 42,000 loans in 2016 to more than 110,000 loans in 2017. More than 650 lenders delivered 

HomeReady loans in 2017.

The supply of homes 

priced in the most 

affordable-one third of 

available inventory fell 

by more than one-third 

between 2012 and 2015.

Half of American 

households that rent 

spend more than 30 

percent of their income on 

rent and utilities and a 

quarter spend more than 

50 percent.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 3

2017 Annual Housing Activities Report and Annual Mortgage Report

In July 2017, Fannie Mae announced an update to Desktop Underwriter® (DU®) that enabled our customers to expand 

homeownership opportunities and better serve creditworthy borrowers. Specifically, the update allowed more loans with 

debt-to-income (DTI) ratios between 45 and 50 percent to receive a DU Approve/Eligible recommendation. This update has 

resulted in more low-and moderate-income borrowers qualifying for a Fannie Mae loan. 

Testing and Learning

Building on the success of HomeReady, in 2017 Fannie Mae launched a number of pilot programs designed to meet 

the affordability needs of today’s homebuyers. Going forward, the pilots will assume a variety of forms, from finding 

new ways to leverage Fannie Mae’s loan data, to working with new types of housing partners, testing new types of 

financing mechanisms, or providing more liquidity to parts of the housing market that are currently underserved. Each 

pilot will be of limited duration and involve small numbers of loans. We will use what we learn to enhance promising 

ideas, scale those that work, and discard the ones that do not meet expectations. All of the pilots are intended to further 

the mandate set forth in the charter to promote access to mortgage credit and provide stability and assistance to the 

secondary mortgage market.

In the Multifamily business, Fannie Mae announced that it will resume Low Income Housing Tax Credit (LIHTC) 

activities to provide reliable sources of capital for affordable rental housing and underserved markets. Our deep 

experience, long history, strong leadership, and partnership approach in the LIHTC market positions us to provide 

ongoing support for the production and preservation of affordable rental housing. Fannie Mae’s re-entry into the LIHTC 

market as an equity investor will expand efforts to increase and improve affordable housing stock and help those 

markets most in need of support. 

Empowering our Customers 

One understandable after effect of the housing and mortgage crisis was lenders’ increased desire for certainty. Lenders 

want certainty that the loans they originate and deliver to Fannie Mae conform to our standards and will not be subject to 

a demand that they repurchase those loans. To address this need, Fannie Mae has taken a number of steps, beginning in 

2013 with the introduction of the new representation & warranty framework. Most recently, Fannie Mae has implemented 

Day 1 CertaintyTM initiative, which is based on a simple premise: making the single-family mortgage process simpler, 

faster, and more certain will lower costs and give lenders more confidence to seek out affordable lending opportunities for 

lower income borrowers. 

Nearly half (48.9 percent) of all single-family 

owner-occupied home purchase loans financed by 

Fannie Mae in 2017 were to first-time homebuyers.
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Day 1 Certainty, through Desktop Underwriter® (DU®), frees lenders from repurchase risk on validated elements. This 

significantly lowers the possibility that lenders will be asked to repurchase a loan in the event of a default, because the 

validation we receive lowers the risk that there will be a default. In this way, Day 1 Certainty is not only a customer-centric 

initiative; it also assists in affordable lending by reducing disincentives to lenders to sell loans to us and allowing lenders to 

reduce their repurchase reserves and deploy that cash in the form of additional loans. 

In the multifamily market, Fannie Mae remained an 

essential partner for owners of affordable rental housing. 

We financed more than $66.1 billion in lending to support 

approximately 770,000 units of rental housing in 2017. 

Approximately 90 percent of the multifamily units financed 

were affordable to families earning at or below 120 percent 

of the area median income in their area, providing support 

for both workforce housing and affordable housing.

Fannie Mae’s multifamily business relies on the Delegated Underwriting and Servicing® (DUS®) program to finance good 

quality, sustainable, affordable rental housing across the United States. Delegation and risk sharing are the cornerstones 

giving lenders the ability to make decisions about their loans while they share risk with Fannie Mae. 

Fannie Mae multifamily lender partners also have the flexibility to try new approaches, such as our Green Financing 

business, which topped $27.6 billion in 2017.

Creating More Affordable Housing

Fannie Mae is engaged in a long-term effort, working with old and new partners, to find innovative solutions to the housing 

affordability challenges of current and future generations of families. By necessity, this effort will require more work to 

preserve and increase the supply of affordable housing in America. 

Many, but not all, of these efforts are encompassed in our Duty to Serve 

(DTS) Plans to promote affordable housing options in rural areas, assist 

in the preservation of affordable housing, and develop financing options 

for manufactured housing. Fannie Mae collected input from communities, 

housing advocacy organizations, builders, and mortgage lenders to create 

the Plans. These Plans become effective in 2018, and we will continue 

to work with the stakeholders to develop, test, learn from, and implement 

practical solutions to the country’s most difficult housing challenges. 

One of the most promising areas for potentially increasing the supply of 

affordable housing is the manufactured housing market. As an example, 

through a partnership with Fannie Mae, the New Hampshire Housing 

More than 400,000 

multifamily rental units 

financed by Fannie Mae 

were affordable to 

low-income families.

Fannie Mae 

purchased 59,367 

single-family loans

from state and local 

housing finance 

agencies in 2017, 

with an unpaid 

principal balance of 

$10.2 billion.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 5

2017 Annual Housing Activities Report and Annual Mortgage Report

Finance Agency began offering 30-year, fixed-rate loans on manufactured homes in approved resident-owned 

communities. Low-cost manufactured housing presents enormous opportunities to solve affordable housing shortages 

in many communities, and Fannie Mae is committed to finding new ways to make financing for these homes more 

widely available.

Conclusion

The mounting challenges in housing access and affordability have developed over many years, and there are no easy 

or fast solutions. Nevertheless, answers do exist and can be realized with diligence and determination. Fannie Mae has 

committed the talents of our people and the backing of our secondary market capabilities toward developing workable and 

enduring solutions. 

Our record of innovation, practical problem solving, and a long-term perspective has helped our customers, and our 

customers’ customers, navigate the changing dynamics of the housing finance market for many decades. Those qualities 

guide us today as Fannie Mae works with customers, and all stakeholders in housing finance, to find new ways to solve 

the housing challenges of America’s future.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 6

2017 Annual Housing Activities Report and Annual Mortgage Report

Structure of Fannie Mae’s Housing Goals

When Fannie Mae became a publicly traded company in 1968, we were charged with dedicating a “reasonable portion” of 

our mortgage purchase business to mortgages affordable to low- and moderate-income families. More detailed statutory 

requirements were established with the passage of the Federal Housing Enterprises Financial Safety and Soundness Act 

of 1992.1 As a result, Fannie Mae is required by statute and regulation to meet certain Housing Goals. We report our 

progress in meeting this responsibility each year to our regulator and to the responsible oversight committees in the 

United States House of Representatives and the United States Senate. We also make the report available to the public by 

posting it on our website. This report fulfills the requirements of the Fannie Mae Charter Act.2

When Congress passed the Housing and Economic Recovery Act of 20083, it preserved the focus of Fannie Mae’s 

affordable housing mission, but changed the regulatory framework to move responsibility for mission oversight and 

enforcement to the newly-created Federal Housing Finance Agency (FHFA). 

In 2015, FHFA established single-family and multifamily Housing Goals for 2015 through 2017. According to FHFA’s 

Director Melvin L. Watt, the goals “establish a solid foundation for affordable and sustainable homeownership and rental 

opportunities in this country.”4 The following single-family home purchase and refinance housing goal benchmarks were 

established for 2015 through 2017: 

 Low-Income Families Home Purchase Goal Benchmark: At least 24 percent of our acquisitions of single-family owneroccupied purchase money mortgage loans must be affordable to low-income families (defined as income no higher

than 80 percent of area median income (AMI)).

 Very Low-Income Families Home Purchase Goal Benchmark: At least 6 percent of our acquisitions of single-family

owner-occupied purchase money mortgage loans must be affordable to very low-income families (defined as families

with income no higher than 50 percent of AMI).

 Low-Income Areas Home Purchase Goal Benchmark: The benchmark level for our acquisitions of single-family

owner-occupied purchase money mortgage loans for families in low-income areas is set annually by notice from

FHFA, based on the benchmark level for the low-income and high-minority areas home purchase subgoal (below),

plus an adjustment factor reflecting the additional incremental share of mortgages for moderate-income families

(defined as income equal to or less than 100 percent of AMI) in designated disaster areas. For 2017, FHFA set the

overall low-income areas home purchase benchmark goal at 18 percent.

 Low-Income and High Minority Areas Home Purchase Subgoal Benchmark: At least 14 percent of our acquisitions of

single-family owner-occupied purchase money mortgage loans must be affordable to families in low-income census

tracts or to moderate-income families in high-minority census tracts.

 Low-Income Families Refinance Goal Benchmark: At least 21 percent of our acquisitions of single-family owneroccupied refinance mortgage loans must be affordable to low-income families.

1 Pub. L. 102-550, tit. XIII, Oct. 28, 1992, 106 Stat. 3672. 

2 12 U.S.C. § 1723a(n). 

3 Pub. L. 110-289, July 30, 2008, 122 Stat. 2654. 

4 Available at http://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=FHFA-Adopts-Final-Rule-on-2015-to-2017-Housing-Goals-forFannie-Mae-and-Freddie-Mac.aspx. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 7

2017 Annual Housing Activities Report and Annual Mortgage Report

For 2017, we believe that we met four out of five single-family goal benchmarks. Single-family housing goals performance 

is measured against both the FHFA-set benchmarks and against goals-qualifying originations in the primary mortgage 

market (Market Share). We will be in compliance with the housing goals if we meet either the benchmarks or the Market 

Share. For the one single-family goal where our performance fell below the benchmark level, FHFA will compare our 

performance with that of the Market Share after the release of data reported under the Home Mortgage Disclosure Act 

(HMDA)5

 in the fall of 2018 and will determine whether Fannie Mae met this goal based on the HMDA market data. 

FHFA also established new multifamily goal benchmarks for 2015 through 2017, and included a new subgoal for small 

multifamily properties (5-50 units) affordable to low-income families: 

 Low-Income Families Goal Benchmark: At least 300,000 multifamily units per year must be affordable to low-income

families.

 Very Low-Income Families Subgoal Benchmark: At least 60,000 multifamily units per year must be affordable to very

low-income families.

 Small Affordable Multifamily Properties Subgoal Benchmark: The subgoal for purchases of mortgages on small

multifamily properties affordable to low-income families increased each year: 6,000 units in 2015; 8,000 units in 2016;

and 10,000 units in 2017.

There is no market-based alternative measurement for the multifamily goals. For 2017, we believe that we met all three 

multifamily goals. 

If our efforts to meet our goals prove to be insufficient, FHFA determines whether the goals were feasible. If FHFA finds 

that our goals were feasible, we may become subject to a housing plan that could require us to take additional steps, 

including describing the actions we would take to meet the goal in the next calendar year. The potential penalties for 

failure to comply with housing plan requirements include a cease-and-desist order and civil money penalties. 

In December 2017, FHFA assessed Fannie Mae’s 2016 housing goals performance using HMDA data for primary 

mortgage market originations and determined that we achieved three of the five single-family housing goals and all of the 

multifamily goals. Fannie Mae did not meet the single-family Very Low-Income Home Purchase Goal or the single-family 

Low-Income Refinance Goal for 2016. FHFA determined that it would not require that we submit a formal housing plan, 

but indicated that FHFA will closely monitor our goals performance in the coming years. 

5 12 U.S.C. § 2801 et seq. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 8

2017 Annual Housing Activities Report and Annual Mortgage Report

The following table sets forth Fannie Mae's housing goals performance against our 2017 single-family and multifamily 

housing goals benchmarks. Final performance results for 2017, including determining whether we met the Market Share, 

will be calculated and published by FHFA in the fourth quarter of 2018.6

Housing Goals 2017 Benchmark 2017 Result

Single-Family

Low-Income Families Home Purchase 24% 25.50%

Very Low-Income Families Home Purchase 6% 5.87%

Low-Income Areas Home Purchase 18% 22.93%

Low-Income Areas and High-Minority 

Home Purchase Subgoal 

14% 18.31%

Low-Income Families Refinance 21% 24.80%

Multifamily (in units)

Low-Income Families 300,000 401,145

Very Low-Income Families Subgoal 60,000 82,674

Small (5-50 units) Affordable Multifamily 

Properties Subgoal

10,000 12,043

6 Our 2017 results have not been validated by FHFA. After validation they may differ from the results reported above. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 9

2017 Annual Housing Activities Report and Annual Mortgage Report

Charter Act Requirements 

Fannie Mae’s Charter Act specifies the information that must be included in the Annual Housing Activities Report

(AHAR).7

 Each statutory requirement is set forth below, in bold, followed by Fannie Mae’s response for 2017. 

Single-Family Activities 

Charter Act Requirement: 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. 

In 2017, 48.9 percent of home purchase mortgages on single-family owner-occupied properties acquired by Fannie Mae 

financed mortgage loans to first-time homebuyers.8 

Fannie Mae has developed or accepts a number of special products and programs (or revisions to conventional products) 

designed to assist first-time homebuyers and low- to moderate-income borrowers. We describe these products and 

programs below, including examples of borrowers who benefited from them in 2017: 

HomeReady, introduced by Fannie Mae in late 2015, is our affordable lending product designed to help our lender 

partners serve more very low-, low- and moderate-income borrowers, with expanded eligibility for financing properties in 

low-income communities. Here are some examples of first-time homebuyers who benefited from HomeReady in 2017: 

 An electrician in his early twenties with an annual income of about $43,000 set a goal to purchase a home in 2017.

With an existing car payment of $400 a month and some credit card debt, he was having a hard time saving up for a

down payment. He moved back in with his parents so he could save more and pay off some minor collections that

impacted his credit score. After about eight months of saving, he was able to qualify for a HomeReady mortgage. With

a three percent down payment, he purchased his first home for $140,000.

 A 49-year-old woman with an annual income of $43,472 wanted to purchase a home in the Midwest. Having worked

as a medical technician for more than 10 years, she had $9,800 in savings and a monthly debt payment of $371. After

qualifying for HomeReady, she was able to purchase her home for $111,000 with a 97 percent loan to value (LTV)

ratio.

7 Charter Act, § 309(n)(2)(A-L). 

8 Exclusions from this calculation include: loans exempt from housing goals reporting (e.g., loan restructures, convertible adjustable rate mortgages, 

and real estate owned properties), long-term standby commitments, refinance mortgages, home equity conversion mortgages, and government 

loans. Fannie Mae has relied on information provided by its customers to identify units occupied by first-time homebuyers. Fannie Mae’s 2017 

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. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 10

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In addition, HomeReady also supported the following low- to moderate-income repeat borrowers in 2017: 

 After completing his military assignment, a service member and his family returned to the United States. With an

annual income of $114,299 and a moderate amount of debt, the borrower qualified for a HomeReady mortgage. After

completing the Framework online course, the borrower purchased a home in a southwest urban area for $389,000,

with a 90 percent LTV ratio.

 A senior citizen living alone in the southeastern United States wanted to purchase a single-family home with a

fireplace and a front porch. With about $42,000 in annual income (made up of Social Security and a pension from a

manufacturing company) and virtually no debt, he qualified for a HomeReady mortgage. Although the borrower was

reluctant to take the online homeownership education course, he agreed to participate in one-on-one counseling. At

the end of the session, he said, “I’ve learned so much today and I’m so thankful.” He purchased the home for

$160,000.

HFA PreferredTM is a Fannie Mae product that enables eligible Housing Finance Agencies (HFAs) to offer loans to 

borrowers with up to 97 percent LTV ratios. HFA Preferred is ideal for borrowers who have limited funds for down 

payment and closing costs and for those needing extra flexibilities on credit and income sources. Borrowers who 

benefited from this product included: 

 A social worker for a child protective services organization and a recent college graduate, who had an annual income

of $67,000 and more than $25,000 in student loans. She had been working for more than six months to improve her

credit by paying down debt, but she was unable to save much for a down payment. A State HFA worked with the

borrower to provide $10,950 in down payment assistance and ensured that she received Fannie Mae’s $1,500 loan

level price adjustment (LLPA) credit to put toward closing costs. As a result she was able to purchase her home for

$365,000, with a 97 percent LTV ratio.

 A couple with a new baby who wanted to buy their first home. As recent college graduates, they had an annual

income of $105,000, excellent credit, and very little debt, but they had less than three percent saved for a down

payment. Working with the Virginia Housing Development Authority (VHDA) they qualified for an HFA Preferred

mortgage and received a two percent grant to help with their down payment and closing costs. After taking the VHDA

home-buyer education course, they purchased the home for $350,000, with a 97 percent LTV ratio.

HFA Preferred Risk SharingTM is another product that enables HFAs to offer loans to borrowers with up to 97 percent 

LTV ratios, but without the cost of mortgage insurance because of the risk sharing that the HFA assumes. Borrowers who 

benefited from this program included: 

 A nurse working in a large Pennsylvania city making $92,976 a year and paying $1,400 a month for rent who was

ready to purchase her own home. She found a one-bedroom condo in a safe neighborhood and using the HFA

Preferred Risk Sharing product, paired with down payment and closing cost assistance offered by the Pennsylvania

Housing Finance Agency (PHFA), she qualified for a mortgage with a monthly payment lower than her rent. After

completing PHFA’s online homeownership education course, she purchased the home for $205,000, with a 97

percent LTV ratio.
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Community Seconds® is a program authorized under Fannie Mae’s guidelines that enables a subordinate mortgage 

financed by an HFA, a nonprofit, or certain other organizations, to be used in connection with a first mortgage delivered to 

Fannie Mae. The Community Seconds mortgage may be used to fund all or part of the down payment, closing costs, 

renovations to the property, or a permanent interest rate buy down.9

 Borrowers who benefited from this program included: 

 A woman looking to retire moved to the Chicago area to be near her children and grandchildren. She wanted to buy a

low-cost home to ensure that she could still afford it in the future if she had to rely solely on Social Security. She

qualified for an HFA Preferred mortgage and received closing cost assistance from the Illinois Housing Development

Authority (IHDA). She decided to purchase a studio unit, a former Fannie Mae REO property that had been renovated

by a local nonprofit and was sold to her for $71,400, a little under market rate.

 A working mother of four who had been renting the same apartment for more than six years in Washington, DC. Living

paycheck to paycheck, she had very little savings but also very little debt. She applied for the Home Purchase

Assistance Program administered by the District of Columbia HFA (DCHFA) and was approved to receive $84,000 in

assistance. She also received $9,150 from the DCHFA Open Doors program. When she qualified for an HFA

Preferred mortgage, she was able to use Fannie Mae’s $1,500 LLPA credit to help pay for a Mortgage Credit

Certificate. She purchased the home for $305,000, with a 71 percent LTV ratio.

The percentage of single-family home purchase mortgages on owner-occupied properties made to first-time homebuyers 

in 2017 under special products and programs (or revisions to conventional products) included the following: 

Products and Initiatives Percentage of Mortgages Made to First-Time 

Homebuyers

97 LTV Expansion10 100.00%

HomeReady 76.88%

Non-HFA Community Seconds 93.81%

HFA Preferred 90.33%

HFA Preferred Risk Sharing 89.44%

Charter Act Requirement: 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. 

Fannie Mae considers service to very low-, low- and moderate-income families to be an important part of its mission. 

Fannie Mae designs its underwriting standards, business practices, repurchase requirements, and procedures to balance 

the company’s multiple objectives of serving families of modest means, meeting its liquidity mission, and appropriately 

addressing credit risk. 

9 Community Seconds are not a Fannie Mae product. Rather, they are subordinate mortgages that comply with Fannie Mae’s guidelines, thus allowing 

the first mortgage on the same property (if it otherwise qualifies) to be delivered to Fannie Mae. 

10 This standard mortgage product has been expanded to allow LTV ratios greater than 95 percent up to a maximum of 97 percent for purchase 

transactions if at least one borrower is a first-time homebuyer. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 12

2017 Annual Housing Activities Report and Annual Mortgage Report

Fannie Mae has a comprehensive fair lending risk management program to support its compliance with fair lending 

laws. This program promotes fair and responsible lending on an enterprise-wide level and is designed to cover various 

aspects of Fannie Mae’s business, including its underwriting standards, business practices, repurchase requirements, 

pricing policies, fee structures, and procedures. 

In 2017, Fannie Mae continued to implement enhancements to its single-family mortgage underwriting and business 

practices. Several changes were specifically designed to: (1) achieve our housing goals; (2) increase consistency in, and 

automation of, the mortgage origination process, which generally promotes fair lending; and (3) increase lenders’ certainty 

and efficiency more generally, which may have the ancillary effect of freeing up lender resources to focus on low- and 

moderate-income borrowers. 

Specifically, Fannie Mae notes a number of accomplishments: 

Day 1 Certainty

In late 2016, Fannie Mae introduced Day 1 Certainty – an initiative that offers lenders freedom from representations and 

warranties on key loan components and drives efficiency in loan originations. Day 1 Certainty leverages industry data 

standardization and “big data” to support a more streamlined, simpler origination process. 

Day 1 Certainty saves time and money in the loan origination process, and significantly reduces lenders’ repurchase risk 

by removing certain representation and warranty obligations. By enabling a more efficient origination process and 

providing greater certainty to lenders, Fannie Mae supports lenders’ efforts to serve a broader borrower base, including 

more low- and moderate-income borrowers. 

In 2017, these components of Day 1 Certainty gave lenders and their borrowers more efficiency and certainty (see the 

following sections for 2017 outcomes): 

 DU validation service: Replaces traditional paper-based processes with digital validation of borrower income, assets,

and employment.

 Enhanced Property Inspection Waivers (powered by Collateral Underwriter® (CUTM): Offers to waive Fannie

Mae’s appraisal requirement on eligible transactions underwritten through DU.

 Certainty on appraised value (powered by CU): Provides Fannie Mae’s upfront acceptance of appraised property

value when our automated analysis shows reduced risk on the appraisal and other requirements are met.

These offerings are discussed in more detail in the DU and CU sections below. 

Desktop Underwriter 

For more than 22 years, DU, the industry’s leading automated underwriting system, has provided lenders a 

comprehensive risk assessment that determines whether a loan meets our eligibility requirements. DU’s evaluation is fair 

and objective, applying the same criteria to every mortgage loan application it considers. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 13

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DU updates in 2017 included: 

 DU Version 10.1

 Enhancements to the DU validation service

DU Version 10.1

In 2017, Fannie Mae implemented DU Version 10.1, which included simpler, more certain underwriting guidelines to help 

lenders serve their borrowers with fewer manual processes. With this implementation, the DTI eligibility overlay for loans 

between 45 and 50 percent will be lifted, allowing more of these loan to receive a DU Approve/Eligible recommendation. 

The DTI ratio is a mainstay of mortgage loan underwriting. DU considers DTI ratio as one factor, among many, in 

performing a comprehensive loan-level risk assessment. Fannie Mae regularly monitors and fine-tunes the DU risk model, 

with careful consideration given to “risk layering,” defined as combining multiple risk factors on a particular loan. The 

maximum DTI ratio DU will accept on a specific loan depends on DU’s evaluation of the overall loan file, including risk 

layering analysis. Fannie Mae can offer these and other flexibilities with DU because it assesses and manages the risk 

layers on a single loan. Relying on the DU risk assessment has expanded access to credit for creditworthy borrowers in a 

responsible way. 

DU 10.1 also included a simplified approach to disputed tradelines, records of activity of credit extended to a borrower, 

reported as disputed by the borrower. Lenders are no longer required to investigate or provide documentation on disputed 

tradelines if DU issues an Approve recommendation using the disputed tradelines. Tradelines reported as medical debt 

continue to be excluded from the disputed tradeline identification, so lenders are not required to investigate them. 

DU validation service 

In late 2016, Fannie Mae implemented the DU validation service, a component of Day 1 Certainty (described above). 

Lenders may opt in to the service, which uses verification reports from vetted third-party data providers to digitally validate 

borrower income, assets, and/or employment. Use of the DU validation service drives operational efficiency in the loan 

origination process and can provide a better borrower experience. Instead of gathering paper documents and providing 

them to their lender, borrowers give the lender permission to access their relevant information electronically. 

Digitally validating borrower income, assets, and/or employment reduces time for lenders to originate a loan and allows for 

more efficient post-closing quality control processes. This time reduction and increased efficiency makes it more costeffective for lenders to originate loans, including smaller loans that are more common for very low- to moderate-income 

borrowers. 

In the past year, Fannie Mae has added additional data vendors to the service, giving lenders more options and fostering 

competition that may drive down costs. In 2017, the DU validation service provided: 

 A 14 percent average reduction in the time from application to close when assets are validated through DU.

 A 17 percent average reduction in application to close time for loans with employment and/or income validated.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 14

2017 Annual Housing Activities Report and Annual Mortgage Report

Collateral Underwriter

Collateral Underwriter is an appraisal risk assessment application that Fannie Mae provides free of charge to its lenders to 

help them proactively manage appraisal quality and originate mortgages with increased certainty and efficiency as well as 

at lower costs. Increased efficiency makes it more cost-effective for lenders to originate loans, including smaller loans that 

are more common for low- and moderate-income borrowers. CU powers two components of Day 1 Certainty: 

 Property Inspection Waiver (PIW): Powered by CU, PIWs are offers to waive the requirement for an appraisal on

eligible transactions underwritten in DU. With more than 28 million appraisals in the CU database, a new appraisal is

not always needed by Fannie Mae for certain transactions. CU uses proprietary analytics in combination with a

previous appraisal on the subject property to determine whether an offer to waive the appraisal can be issued.

When a PIW is offered and accepted, the borrower saves the cost of an appraisal, and loan origination time can be

shortened because appraisal-related delays are eliminated. The lender receives freedom from representations and

warranties on the value, condition, and marketability of the property.

In 2017, Fannie Mae expanded PIW eligibility to include some purchase transactions in addition to refinances. While

limited to certain lower LTV loans, this update responded to market changes, and allows our lenders to offer their

borrowers a choice for efficiency and cost savings by foregoing an appraisal. Eligibility is limited to one-unit principal

residences and second homes up to a maximum 80 percent LTV ratio. It is estimated that PIW offers will be issued on

less than five percent of purchase transactions. Borrowers always have the choice to obtain an appraisal. Fannie Mae

continues to require full appraisals on the vast majority of purchase money mortgages to establish market value of

homes and provide valuable input to our appraisal database to support CU analytics and future innovations.

 Certainty on appraised value: When a loan is delivered to Fannie Mae with a CU risk score of 2.5 or lower on the

appraisal, the loan is eligible for relief from representations and warranties on property value. Lenders remain

responsible for data accuracy and property eligibility; however, they gain underwriting efficiencies and potentially

reduce revision requests with the appraiser. In 2017, more than 63 percent of appraisals delivered to Fannie Mae

received a CU risk score of 2.5 or lower.

Language Resources for Lenders/Servicers

Spanish-speaking borrowers represent one of the largest growing segments of the mortgage market. To support this 

growing segment, Fannie Mae continues to look for ways to help our sellers and servicers better serve these customers. 

One way that Fannie Mae helps is by consolidating Spanish language documents and making them available on our 

website. 

 Spanish Language Resources for Servicers include Spanish translations of routine servicing documents as well as

borrower notices related to delinquencies, modifications, and workout options.

 Spanish Language Resources for Lenders are Spanish translations of documents used in the loan origination

process. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 15

2017 Annual Housing Activities Report and Annual Mortgage Report

In recognition of the significant Vietnamese population in the Houston area, Fannie Mae published hurricane relief 

materials in Vietnamese, as well as English and Spanish. 

Uniform Residential Loan Application 

At the direction of FHFA, in 2016 Fannie Mae and Freddie Mac (Enterprises) published the redesigned Uniform 

Residential Loan Application (URLA) (also known as Fannie Mae Form 1003/Freddie Mac Form 65) and developed a 

corresponding dataset, called the Uniform Loan Application Dataset (ULAD). The Enterprises collaborated with industry 

stakeholders including lenders, government agencies (e.g., FHA, VA, USDA-RD, and the Consumer Finance Protection 

Bureau (CFPB)), technology solution providers, mortgage insurers, trade associations, housing advocates, and consumer 

groups. The Enterprises published the redesigned URLA, as well as a Spanish Translation version of the URLA 

(STURLA), in September 2016. 

The Enterprises sought to create an improved loan application that: 

 Captures specific information needed by a lender to underwrite the loan.

 Is logically organized, visually unified, and easy for borrowers and lenders to understand and navigate.

 Uses simple terminology to aid in comprehension.

 Meets statutory and legal requirements.

The STURLA, when used in conjunction with the URLA, is a translation tool for Spanish-speaking borrowers to support an 

improved loan application experience. 

In creating the ULRA and STURLA, the Enterprises conducted seven rounds of testing with consumers and lenders over 

the course of a nine-month period; four of these rounds included Spanish-speaking consumers. 

The redesigned URLA was a finalist for the 2017 ClearMark Awards, which are given by the Center for Plain Language to 

recognize “the best plain language communications written for consumers.”

Also in 2017, the Enterprises: 

 Conducted stakeholder outreach and published an implementation timeline: lenders may begin using the redesigned

URLA starting July 1, 2019, and the Enterprises will require its use for all new loan applications beginning February

2020.

 Assisted FHFA in conducting consumer testing of a new question about the applicant’s language preference for the

redesigned URLA. The question was finalized and new versions of the forms, which included the question, were

republished.

 Fannie Mae also obtained "Safe Harbor" from the CFPB for the use of the URLA under the Equal Credit Opportunity

Act and Regulation B.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 16

2017 Annual Housing Activities Report and Annual Mortgage Report

HomeReady 

Fannie Mae’s HomeReady mortgage product is designed to help lenders serve creditworthy very low- to moderate-income 

borrowers with expanded eligibility for financing homes in designated low-income communities. With HomeReady, 

borrowers can obtain affordable conventional home financing with cancellable mortgage insurance and an education 

requirement to assist in making homeownership sustainable. HomeReady provides simplicity and certainty for lenders, 

favorable pricing and execution, and product features designed to align with today’s homebuyer demographics and 

support sustainable homeownership. 

HomeReady offers pricing advantages with Fannie Mae, waiving the risk-based loan-level price adjustments for 

HomeReady loans with LTV ratios above 80 percent and a borrower credit score equal to or higher than 680. 

For purchase transactions, HomeReady requires homeownership education via Framework (an online homeownership 

education provider) or one-on-one U.S. Department of Housing and Urban Development (HUD)-approved housing 

counseling to help homebuyers prepare for homeownership. Certain exceptions are allowed. 

HomeReady features include: 

 Up to 97 percent LTV ratio; and a combined LTV (CLTV) ratio up to 105 percent with eligible Community Seconds.

 No requirement that the borrower be a first-time homebuyer.

 Boarder income and accessory unit rental income can be used for qualifying.

 Manufactured housing titled as real estate is also an eligible property type.

Also in 2017, Fannie Mae supported the use of HomeReady by: 

 Training more than 9,600 loan officers in 126 webinars or in-person sessions.

 Providing on-demand eLearning training with more than 1,650 unique viewers.

 Creating a new eLearning course designed specifically for loan officers; launched in spring 2017, the course received

more than 2,730 unique viewers in 2017.

 Refreshing the HomeReady webpage to make it easier to use and continuing to provide extensive lender resources,

including a new Quick Start Guide, updated FAQs, simple sample borrower scenarios, an enhanced Income Eligibility

Lookup tool, and more.

 Creating additional free HomeReady customizable marketing materials for lenders to use.

 Increasing general awareness of HomeReady through outreach efforts to lenders, real estate professionals and other

affordable housing stakeholders at 224 events in 2017.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 17

2017 Annual Housing Activities Report and Annual Mortgage Report

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 offers reduced mortgage insurance coverage with no loan-level 

price adjustments. 

In 2017, Fannie Mae partnered with US Bank to increase HFA Preferred volume in 10 target states for which US Bank is 

the HFA Preferred master servicer. To accomplish this, Fannie Mae developed and executed a communications plan to 

engage with HFAs and their lender partners on a regular basis to help drive understanding and education around the 

value of the HFA Preferred mortgage. Fannie Mae developed custom emails that the HFAs pushed to their lender and 

realtor networks, redesigned the HFA Preferred landing page, developed new HFA Preferred collateral, and participated 

in lender training and in-person outreach. 

These efforts resulted in an increase in HFA Preferred loan volume among the 10 target states—in October 2016, about 

34 percent of the target states’ deliveries were HFA Preferred mortgages, but that number increased to 55 percent by 

October 2017, helping to serve more low- to moderate-income borrowers.

Homebuyer Education and Counseling

Fannie Mae believes that high-quality homeownership education provides borrowers with the information and resources 

that they need to navigate the home buying process and make informed decisions that support sustainable 

homeownership. 

In 2017, Fannie Mae continued to provide strong support for homeownership education by: 

 Continuing incentives for HomeReady loans on which the borrowers receive one-on-one housing counseling.

 Continuing to collaborate with Framework® to connect HomeReady borrowers and others to comprehensive, online

homebuyer education (provided in English and Spanish), and post-purchase support. More than 84,000 homebuyers

have completed the Framework course.

 Providing extensive outreach and training to lenders and HUD-approved counseling organizations on HomeReady

and the incentives for one-on-one housing counseling.

 Promoting the value of homeownership education and housing counseling to lenders, real estate professionals, and

consumers through articles and blog posts on leading industry websites including the Fannie Mae Perspectives blog,

Housing Wire, Zillow, MSN Money, and Realtor.com. Fannie Mae’s Economic and Strategic Research also published

a report, Pre-Purchase Homeownership Education Qualitative Research: Lower-Income First-Time Homebuyers.

 In January 2017, Fannie Mae also hosted a Symposium (attended by 57 industry leaders) to increase partnerships

between lenders and housing counselors.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 18

2017 Annual Housing Activities Report and Annual Mortgage Report

Lender Marketing Resources 

The Fannie Mae Marketing Center is a free online tool lenders and other housing professionals may use to access and 

customize a variety of marketing and informational materials to reach and assist borrowers. 

In 2017, Fannie Mae added a Condo Buyer’s Guide to the Marketing Center that addresses common terminology, the 

best questions to ask before buying, and obligations that must be met throughout the process. The Condo Buyer’s Guide

is available in both English and Spanish. 

Credit Policy Enhancements

Fannie Mae made the following Single-Family Selling Guide policy updates in 2017 that impact low- and moderate-income 

families: 

Student Loan Debt 

The Federal Reserve Bank of New York reports that 44 million Americans have student loan debt; seven in 10 graduates 

of public and nonprofit colleges in 2015 had student loan debt; and recent graduates averaged $34,000 in student loan 

debt. With this debt potentially inhibiting homeownership, Fannie Mae made several policy updates in 2017 to provide 

student loan debt solutions: 

 Offer borrowers an option to pay off debt and get a better interest rate.

o Lenders can offer homeowners who have at least 20 percent equity in their homes a cash-out refinance

to pay off one or more student loans.

o Borrowers have an opportunity to convert higher interest rate student debt to a lower interest rate and

potentially reduce monthly debt payments.

o When at least one student loan is paid off directly to the student loan servicer and delivered to Fannie

Mae, we waive the loan-level price adjustment.

 Accept the debt amount on the credit report.

o Lenders can simply accept the monthly student debt payment amount listed on the credit report.

o No need to manually calculate one percent of the loan balance in most cases.

o With a different approach to DTI, lenders may be able to serve more borrowers.

In addition to the flexibilities specific to student loan debt, Fannie Mae updated policies to permit borrowers to exclude 

debts paid by others, potentially lowering a borrower’s DTI ratio. 

 Lenders can exclude a borrower’s non-mortgage debts (such as credit card, auto, and student loans) that have been

paid by another person for the past 12 months from the DTI ratio calculation, with proper documentation.

 Lenders can exclude mortgage-related debt from the borrower’s DTI ratio calculation when it can be documented that

another party obligated on the mortgage has been making timely mortgage payments for the past 12 months (and the

borrower is not using rental income from the property to qualify).
© 2018 Fannie Mae. Trademarks of Fannie Mae. 19

2017 Annual Housing Activities Report and Annual Mortgage Report

Clarification on Industry-wide Changes to Public Records Information on Credit Reports 

In July 2017, the three nationwide consumer credit reporting agencies (CRAs) − Equifax, Experian, and TransUnion –

implemented a public record data standard designed to improve the accuracy of credit reports. With the implementation of 

the CRAs’ National Consumer Assistance Plan, most civil judgments and tax liens are no longer included in credit reports. 

With this industry change, Fannie Mae clarified lender responsibilities. 

 If, during Fannie Mae’s post-acquisition file review, we identify a loan that has a lien or judgment that was not

observable from the lender’s origination file, Fannie Mae will cite a finding only and will not consider this to be a

significant defect requiring remediation by the lender.

 Lenders are not required to use sources to identify potential civil judgments and tax liens other than the loan

application, credit report, and preliminary title report in their loan origination process. Lenders are, however, required

to assess any information they are made aware of prior to loan closing.

Change to Treatment of Alimony 

The Selling Guide was updated to allow more flexibility toward the treatment of alimony paid by the borrower. Lenders will 

now have the option of reducing the borrower's monthly qualifying income by the amount of the monthly alimony payment 

in lieu of including it as a monthly payment in the calculation of the DTI ratio. Lenders may now choose to use either 

option – reducing income or treating it as a debt – when qualifying borrowers, which can result in a lower DTI ratio. 

ARM Enhancements 

In order to support access to credit and simplify our guidelines, Fannie Mae aligned the maximum allowable LTV, CLTV 

and HCLTV ratios for adjustable-rate mortgages (ARMs) with fixed-rate mortgages for all transactions, occupancy, and 

property types, up to a maximum of 95 percent for DU and manually underwritten loans.

Other Support for Low- and Moderate-Income Borrowers

Fannie Mae continues to support low- and moderate-income borrowers through a number of policies, including: 

 Permitting the use of Community Seconds, which are subordinate mortgages that are used in connection with a first

mortgage delivered to Fannie Mae. Fannie Mae does not purchase Community Seconds, but allows the use of eligible

subordinate Community Second loans when Fannie Mae purchases or securitizes the first mortgage loan. Community

Second mortgages permit consumers to leverage public, nonprofit, and employer funds to finance a down payment

and/or closing costs, thus helping more families achieve homeownership. For most Fannie Mae purchase loans, no

minimum contribution from the borrower’s own funds is required on one-unit properties. A Community Second loan

may provide the necessary funds for all or part of the down payment, closing costs, and property renovations. With

Community Seconds, a higher CLTV ratio is allowed (up to 105 percent) on most Fannie Mae loan transactions.

 Providing automated underwriting through DU for Community Land Trust (CLT) loans. CLTs are independent,

nonprofit organizations developed by communities to create and preserve long-term, affordable housing for low- and

moderate-income residents. Fannie Mae’s CLT loan product is a standard offering in DU that enables lenders to have

the certainty and simplicity of automated underwriting. CLTs purchase homes in their communities and create a longterm ground lease under which low- and moderate-income families are able to become homeowners at affordable

monthly ground rents. The ground lease includes provisions that require the continued use of the property for low- and

moderate-income families in the future. Fannie Mae purchases or securitizes first mortgage loans secured by these

ground leases.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 20

2017 Annual Housing Activities Report and Annual Mortgage Report

 Providing financing for homes with resale restrictions that preserve long-term affordability. To help address the high

cost of housing in some markets, many governmental and nonprofit entities support the development of properties

subject to resale restrictions. Those strategies help to create and preserve affordable housing stock in communities

over the long term. Resale restrictions may limit the use of all or part of the housing to persons or families of low- and

moderate-income or on the basis of age (senior communities must comply with applicable laws). Resale restrictions

may also restrict the resale price of the property to ensure it is available to future low- and moderate-income

borrowers. The restricted resale price provides a subsidy to the homebuyer in an amount equal to the difference

between the sales price and the market value of the property without resale restrictions. Fannie Mae provides

financing opportunities for homes with resale restrictions.

Home Affordable Refinance Program (HARP) 

Fannie Mae continued to support the HARP program in 2017 and provided marketing outreach materials to help lenders 

reach eligible homeowners. More than 22,000 HARP mortgages were delivered to Fannie Mae in 2017, bringing the total 

number of HARP mortgages to more than two million. 

In 2017, at the direction of FHFA, Fannie Mae continued preparing for the retirement of HARP and implementation of the 

high LTV refinance option in late 2018. 

Charter Act Requirement: 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, 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 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. 

An analysis of the performance of single-family mortgage loans serving low- and moderate-income borrowers 11 shows 

that these loans do not perform as well as loans serving borrowers with incomes above the median level. The chart below 

compares 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 third-party 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. For example, loans made in 2016 to low- and moderate-income families were 93.51 percent 

more likely to become 90-days delinquent and 395.35 percent more likely to default than loans made to families with 

income above the median level. This analysis is based on income relative to AMI and does not control for other risk 

dimensions, such as LTV ratio or credit history. Information regarding serious delinquency and default performance is 

based on acquisitions through December 2016; performance is observed through December 2017. 

11 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 the borrowers’ income relative to the AMI. Additionally, this analysis only pertains to owner-occupied principal residences. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 21

2017 Annual Housing Activities Report and Annual Mortgage Report

There can be significant changes in relative delinquency and default rates between various years. Reflected here are the 

relative measures between low- and moderate- income borrowers and those borrowers above the median level. 

Relative 90-Day Delinquency and Default Rates between 

Single-Family Loans Serving Low- and Moderate-Income Families and 

Loans Serving Families with Income above the Median Level, by Year12

Acquisition 

Year Income Group Likelihood of 90 Delinquency

Increased Likelihood 

of 90 Day Delinquency Likelihood of Default Increased Likelihood of Default

2004

Above Median Income 0.388% 2.51%

Low-Mod Income 1.006% 159.49% 5.35% 113.18%

2005

Above Median Income 0.567% 6.41%

Low-Mod Income 1.267% 123.34% 9.19% 43.39%

2006

Above Median Income 1.006% 11.54%

Low-Mod Income 2.194% 118.12% 14.49% 25.54%

2007

Above Median Income 2.882% 13.61%

Low-Mod Income 4.309% 49.49% 18.19% 33.63%

2008

Above Median Income 1.962% 5.04%

Low-Mod Income 2.870% 46.32% 8.28% 64.23%

2009

Above Median Income 0.169% 0.57%

Low-Mod Income 0.350% 107.71% 1.39% 145.21%

2010

Above Median Income 0.133% 0.48%

Low-Mod Income 0.300% 125.77% 1.20% 151.10%

2011

Above Median Income 0.116% 0.29%

Low-Mod Income 0.275% 136.54% 0.75% 158.01%

2012

Above Median Income 0.115% 0.25%

Low-Mod Income 0.268% 132.29% 0.65% 158.16%

2013

Above Median Income 0.108% 0.19%

Low-Mod Income 0.289% 168.43% 0.57% 195.79%

2014

Above Median Income 0.138% 0.11%

Low-Mod Income 0.329% 137.93% 0.35% 212.36%

2015

Above Median Income 0.108% 0.03%

Low-Mod Income 0.260% 141.36% 0.10% 223.42%

2016

Above Median Income 0.142% 0.00%

Low-Mod Income 0.274% 93.51% 0.02% 395.35%

12 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. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 22

2017 Annual Housing Activities Report and Annual Mortgage Report

Multifamily Activities 

Charter Act Requirement: 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. 

Primary and Secondary Market Trends

The primary multifamily housing market is influenced by a variety of economic and demographic conditions. These 

conditions impact the demand for, and absorption of, additional rental housing units. The U.S. multifamily sector has had a 

solid run since 2010, with increasing rent growth and declining vacancies, as illustrated in the chart below. Key 

fundamentals that have propelled the multifamily sector include: favorable demographic trends, continued job growth, and 

increasing renter household formations. 

Momentum will likely slow in 2018 due to elevated levels of new supply and moderating job growth. As a result, the 

national vacancy rate is expected to increase, and rents are expected to grow at a lower and more normalized pace. 

Overall, the multifamily sector is expected to remain fairly stable in 2018. 

Estimated National Rent Level and Vacancy Rate 

Source: Fannie Mae Economics and Multifamily Market Research 

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

$925

$975

$1,025

$1,075

$1,125

$1,175

$1,225

$1,275

Rent Level

Vacancy Rate
© 2018 Fannie Mae. Trademarks of Fannie Mae. 23

2017 Annual Housing Activities Report and Annual Mortgage Report

Rent growth continued to exceed the overall inflation rate, with rent growth estimated to have ended the year at about 2.5 

percent, with inflation equal to 2.1 percent year-over-year as of the end of December 2017. Rents are expected to 

increase approximately two percent in 2018. 

Continued demand for multifamily rental housing was reflected in the net increase in the number of occupied rental units 

during 2017 (known in industry terms as positive net absorption). Net absorption likely totaled at least +168,000 units, 

compared to an estimated +214,000 units absorbed in 2016, according to Reis, Inc. Net absorption is expected to remain 

positive in 2018, although at a much lower level than last year. 

National Apartment Sales Volume and Cap Rates

Source: Real Capital Analytics (www.rcanalytics.com)

Sales of apartment properties valued at $2.5 million or greater totaled an estimated $43.6 billion in the fourth quarter of 

2017, bringing the annual estimated total to $150 billion, which is a decrease of -7.0 percent compared to the $161 billion 

total for 2016, according to recent data from Real Capital Analytics. Although total multifamily sales activity dipped yearover-year in 2017, it was still the third-largest year in terms of dollar volume, coming in just behind the $154 billion total in 

2015. Just eight years earlier in 2009, the total volume for multifamily property sales was only $18 billion. 

Despite the pullback in multifamily property sales volume, growth in multifamily property prices remained positive during 

2017, albeit at a slower pace. According to Moody’s/RCA Commercial Property Price Index, multifamily property sales 

prices increased by an estimated 11 percent in 2017, reflecting an ongoing declining growth trend compared to a 12 

percent increase in 2016 and a 13 percent increase in both 2015 and 2014. 

5.3%

5.5%

5.7%

5.9%

6.1%

6.3%

6.5%

6.7%

6.9%

7.1%

7.3%

$0

$10

$20

$30

$40

$50

$60

Billions

Sales

Cap Rates
© 2018 Fannie Mae. Trademarks of Fannie Mae. 24

2017 Annual Housing Activities Report and Annual Mortgage Report

Standardization and Securitization 

Commercial mortgages, including multifamily mortgage loans, are much less homogenous than single-family residential 

mortgages. Over the past three decades, there has been a continual move towards 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 mortgage-backed 

securities (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 

transfers interest rate risk to private capital at rate lock, with no aggregation risk for Fannie Mae or our lenders. 

2017 Standardization & Securitization Highlights: 

 Fannie Mae issued $65 billion in multifamily MBS in 2017, which accounted for 99 percent of its multifamily

production.

 In an effort to improve the liquidity and increase demand for multifamily MBS, in 2017 Fannie Mae issued $12 billion

of multifamily structured securities through 12 Real Estate Mortgage Investment Conduit transactions as part of our

GeMSTM program. GeMS structured securities are backed by multifamily MBS previously issued by Fannie Mae and

are sold to institutional investors who might not otherwise invest in multifamily MBS. In 2018, Fannie Mae will continue

to market its multifamily structured product offerings through the GeMS program.

 Standardized, timely and in-depth disclosures also help to attract investors, improving liquidity and increasing

demand. In 2017 the business launched a new DUS DiscloseTM platform, expanding the data available for multifamily

securities while aligning with industry best practices for disclosure. In 2018, we plan to build upon this new platform

and incorporate the disclosure for the multifamily structured product offerings and provide one location for investors to

access the data and documents for all multifamily securities.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 25

2017 Annual Housing Activities Report and Annual Mortgage Report

Affordable Housing Partnerships 

Charter Act Requirement: 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 affordability strategies under section 

105 of the Cranston-Gonzalez National Affordable Housing Act.13

 

Activities undertaken by Fannie Mae in 2017 with nonprofit and for-profit organizations, state and local governments, and 

HFAs included: 

 Fannie Mae purchased 59,367 single-family loans from HFAs in 2017, with an unpaid principal balance of $10.2

billion.

 At least three foreclosed multifamily properties, with almost 695 units, were marketed to nonprofits, public entities

and/or affordable housing developer organizations for potential purchase to support local comprehensive housing

strategies including addressing affordable housing issues and needs.

 Fannie Mae helped provide financing for over 13,000 Low-Income Housing Tax Credit (LIHTC) units of housing by

providing $811 million of debt financing on LIHTC projects via our lending partners.

 Through Fannie Mae’s SERVE initiative programs, employees make a difference in our communities year-round

through volunteer efforts with nonprofit partners. In 2017, 50 percent of our employees volunteered and provided

more than 18,445 hours to our nonprofit partners, demonstrating our commitment to serve the communities where we

live and work. Employees also supported a wide range of causes and nonprofit organizations through our employee

giving programs, including raising $89,000 through employee “fun-raisers” for eight Help the Homeless® community

partners.

 Enhanced our partnerships with the Asian Real Estate Association of America, National Association of Hispanic Real

Estate Professionals, and National Association of Real Estate Brokers whose members play a critical trusted advisor

role in the home-buying and finance process, particularly within the Asian, Hispanic and African-American

communities. Through our involvement, we engaged thousands of minority real estate professionals to build solutions

to better serve minority communities. For example, in 2017, Fannie Mae participated in each organization’s national

conferences and select regional chapter events in markets where our HomeReady product helps overcome borrower

affordability challenges.

 Established partnerships with three universities serving high-needs rural regions to address housing supply issues

and consumer financial barriers to housing stability and homeownership.

 Facilitated the sale of 2,099 single-family real estate owned properties to or through nonprofits and community-based

buyers involved in supporting housing strategies that addressed local stabilization and affordable housing needs,

including 1,578 properties in the 18 markets of the Neighborhood Stabilization Initiative (NSI). Additionally, in

December 2017, the NSI was expanded into 10 additional markets to support the stabilization and affordable housing

initiatives in those communities.

 Held 16 training and outreach sessions with nonprofits and community based organizations on affordable lending

products that support community stabilization and address affordable housing needs in the NSI communities.

13 Under Section 105, comprehensive housing affordability strategies include, among other things: (1) efforts to address homelessness and meet the 

needs of homeless persons; (2) the provision of housing for different categories of residents, such as very low-income, low-income, and moderateincome families, the elderly, single persons, large families, residents of non-metropolitan areas, families who are participating in an organized 

program to achieve economic independence and self-sufficiency, and other categories of persons; (3) combined efforts with private industry, 

nonprofit organizations and public institutions to deliver safe and adequate housing; (4) encouraging public housing residents to become 

homeowners; and (5) efforts to provide affordable housing through the production of new units, rehabilitation, or acquisition of existing units. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 26

2017 Annual Housing Activities Report and Annual Mortgage Report

 Introduced the Sustainable Communities Innovation Challenge, through which Fannie Mae will attract and support

promising proposals from public, nonprofit, and private sector organizations that will help to address the nation’s

affordable housing issues by focusing on the advancement of sustainable communities – those that provide residents

with integrated access to affordable housing, healthcare, education, and job opportunities.

 In partnership with the National Urban League, Fannie Mae led the Future Housing Leaders, a recruitment program

that focuses on helping employers from across the housing sector build diverse pipelines of entry-level talent. In

addition to connecting college students with paid summer internships, Future Housing Leaders aims to increase the

diversity in the housing industry to reflect the increasingly diverse next generation of homeowners and renters.

 Announced the Healthy Housing RewardsTM initiative, which provides a financial incentive for borrowers who

incorporate healthy design features for newly constructed or rehabilitated affordable multifamily rental properties. This

initiative targets properties where at least 60 percent of the units are serving tenants at 60 percent of AMI or less and

meet the minimum certification of the Fitwel® Certification System. Fitwel is a joint initiative, led by the U.S. Centers

for Disease Control and Prevention and the General Services Administration, and is operated by the Center for Active

Design, an independent non-profit organization.

One of the purposes of the Cranston-Gonzalez National Affordable Housing Act is to extend and strengthen partnerships 

among all levels of government and the private sector in the production and operation of housing that is affordable to lowand moderate-income families. Fannie Mae believes that the activities listed above support the objectives of this statute. 

Other Charter Act Requirements 

Charter Act Requirement: 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. 

The dollar volume and number of mortgages on owner-occupied properties that relate to each of the housing goals are set 

forth on Table 1A of the Annual Mortgage Report (AMR).14

The dollar volume and number of mortgages on rental properties that relate to each of the housing goals are set forth on 

AMR Table 1A (Single-Family Owner-Occupied 2-4 Unit Properties/Mortgages) and AMR Table 1B (Multifamily). In 2017, 

Fannie Mae mortgage purchases financed 10,873 units affordable to families earning 80 percent or less of AMI living in 

owner-occupied 2-4 unit properties.15

 

14 The AMR is provided pursuant to § 309(m) of the Charter Act. 

15 For 1,900 units that we financed, affordability data was not provided so these units are not included in our calculation. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 27

2017 Annual Housing Activities Report and Annual Mortgage Report

Charter Act Requirement: 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 the census tracts, 

and the geographic distribution of the housing financed. 

In 2017, Fannie Mae’s purchases of mortgages served 2,913,898 families, as measured by the number of units financed. 

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 on AMR Tables 2, 3A, 3B, 4, 5A, 6, 7, 8A, 8B, 9, 10A, 10B and 10C. 

Charter Act Requirement: 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. 

In 2017, Fannie Mae purchased 7,050 single-family mortgages and 429 multifamily mortgages with an aggregate unpaid 

principal balance of approximately $987 million and $5.4 billion, respectively, that were originated in conjunction with 

public subsidy programs.16

 

Charter Act Requirement: 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]. 

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

Mae. 

Charter Act Requirement: Compare the level of securitization versus portfolio activity. 

During 2017, Fannie Mae securitized $580.3 billion in mortgage loans. We had total portfolio acquisitions of $293.4 billion, 

which included $11.8 billion of delinquent loans purchased from our MBS trusts. In 2017, Fannie Mae’s portfolio 

decreased by $41.6 billion. 

16 For purposes of this AHAR, Fannie Mae defined programs originated in conjunction with public subsidy programs to include: certain single-family and 

multifamily HUD-related and Rural Housing Service-related programs and other government insured and/or related programs; Fannie Mae’s 

Multifamily Affordable Housing execution; mortgages purchased from housing finance agencies that benefit from federal tax exemption; bond credit 

enhancements; and mortgages that benefit from low-income housing tax credits. Because some loans may have been made in conjunction with 

more than one public subsidy program, there may be a small amount of overlap. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 28

2017 Annual Housing Activities Report and Annual Mortgage Report

Charter Act Requirement: Describe in the aggregate the seller and servicer network of the corporation, including 

the volume of mortgages purchased from minority-owned, women-owned, and community-oriented lenders, and 

any efforts to facilitate relationships with such lenders. 

Based upon annual information provided by lenders, Fannie Mae has selling and servicing relationships with 

approximately 1,883 single-family and 51 multifamily primary market lenders through which the company both purchases 

loans for its portfolio and issues MBS. The following table sets forth the volume of mortgages purchased in 2017 from 

single-family lenders identified as minority- or women-owned lenders, women-owned lenders,17 and single-family and 

multifamily lenders community-oriented lenders.18

Seller/Servicer Type Volume of Mortgages

Minority- or women-owned $5.29 billion

Women-owned $4.32 billion

Community-oriented lenders $129.01 billion

Efforts to facilitate relationships with single-family lenders include formal business alliances or affinity agreements to 

provide services and training to incentivize small lender participation with Fannie Mae.19

17 Some of these women-owned lenders also identified as a minority group such as African-American, Hispanic, Asian-Pacific, or Indian-Alaskan. 

18 For these purposes, a “community-oriented lender” is defined as a financial institution with total assets of less than $1.216 billion as of December 31, 

2016. This definition parallels the definition of “small bank” under the implementing regulations of the Community Reinvestment Act (12 C.F.R. § 

228.12), as in effect during 2017. 

19 These agreements do not preclude members from doing business through other secondary market channels. 
© 2018 Fannie Mae. Trademarks of Fannie Mae. 29

2017 Annual Housing Activities Report and Annual Mortgage Report

The Annual Mortgage Report (AMR)
© 2018 Fannie Mae. Trademarks of Fannie Mae. 30

2017 Annual Housing Activities Report and Annual Mortgage Report
© 2018 Fannie Mae. Trademarks of Fannie Mae. 31

2017 Annual Housing Activities Report and Annual Mortgage Report

Total Qualifying Total Qualifying Very Total Qualifying Low- Qualifying Low- Total Qualifying All Mortgage

Mortgages Low-Income Mortgages Low-Income Mortgages Income Area Income Area Mortgages Low-Income Purchases

Eligible To Purchase Eligible To Purchase Eligible To Purchase Purchase Eligible To Refinance

Qualify As Money Qualify As Very Money Qualify As Low- Money Goal Money Qualify As Mortgages1

Low-Income Mortgages Low-Income Mortgages Income Area Mortgages Subgoal Low-Income

Purchase Purchase Purchase Mortgages Refinance1

Money Money Money

Purchase of Single-Family Mortgages

 Owner-Occupied 1-Unit Properties/Mortgages:

 UPB ($ Millions) $244,199 $39,248 $244,199 $6,636 $244,199 $43,439 $35,879 $195,757 $31,827 $461,528 

 Number of Mortgages 1,026,150 261,617 1,026,150 60,180 1,026,150 233,588 185,956 890,325 220,383 2,017,538

 Owner-Occupied 2-4 Unit Properties/Mortgages:

 UPB ($ Millions) $1,975 $278 $1,975 $41 $1,975 $905 $894 $3,608 $665 $5,607 

 Number of Mortgages 6,417 1,679 6,417 381 6,417 3,152 3,088 11,798 3,385 18,292

Total Single-Family Owner-Occupied Mortgages

 in 1-4 Unit Properties:

 UPB ($ Millions) $246,174 $39,527 $246,174 $6,677 $246,174 $44,344 $36,773 $199,365 $32,492 $467,136 

 Number of Mortgages 1,032,567 263,296 1,032,567 60,561 1,032,567 236,740 189,044 902,123 223,768 2,035,830

Goals Performance

 Fannie Mae's Single-Family Goals 24% 6% 18% 21%

 Goals Performance Percentage 25.50% 5.87% 22.93% 24.80%

 Fannie Mae's Single-Family Subgoal 14%

 Subgoal Performance Percentage 18.31%

1

Make Home Affordable Modification loans are included in all Single-Family tables where applicable. An Enterprise's modification of a loan in accordance with the Make Home Affordable program announced on March 4, 2009, that is 

held in the Enterprise's portfolio or that is in a pool backing a security guaranteed by the Enterprise, shall be treated as a purchase of a refinance mortgage for the purposes of the housing goals.

Table 1A

Fannie Mae's Mortgage Purchases by Mortgage Type and Housing Goal Status

Summary Table on Single-Family Housing Goal Performance

For Calendar Year 2017

Mortgages may count toward more than one goal. On certain tables, sum of entries may not equal totals due to rounding.
© 2018 Fannie Mae. Trademarks of Fannie Mae. 32

2017 Annual Housing Activities Report and Annual Mortgage Report

All Mortgage 

Purchases

Purchases of Multifamily Mortgages

Multifamily 5-50 Unit Properties: 

UPB ($ Million) $631 $178 $2,146 

Number of Mortgages 460 265 679

Number of Properties 464 268 687

Number of Units 10,081 3,373 20,375

Multifamily > 50 Unit Properties:

UPB ($ Million) $24,941 $3,649 $58,541 

Number of Mortgages 2,441 1,575 2,949

Number of Properties 2,445 1,575 2,953

Number of Units 370,156 66,387 610,493

Missing Affordability Data Adjustments

Rental Unit Affordability Estimation 

Eligible Units Qualifying Units Eligible Units Qualifying Units

Units in Multifamily Properties:

Number of Units with Missing Data 32,287 32,287 N/A

Units Where Rent Estimation is Not Possible 0 0 N/A

Units Where Rent Estimation is Possible 32,287 32,287 N/A

Large (>50 unit) properties 29,237 18,946 29,237 11,501 N/A

Small (5-50 unit) properties 3,050 1,962 3,050 1,414 N/A

Not Subject to Cap 32,287 20,908 32,287 12,914 N/A

Subject to Cap 0 0 0 0 N/A

5% Cap 31,543 31,543 N/A

Adjustments to Number of Units for:

Missing Data 20,908 12,914 N/A

Total Multifamily:

UPB ($ Million) $25,572 $3,826 $60,687 

Number of Mortgages 2,901 1,840 3,628

Number of Mortgages with both 5-50 and >50 Unit 0 0 0

Number of Properties 2,909 1,843 3,640

Number of Units 380,237 69,760 630,868

Number of Units (Adjusted) 401,145 82,674 630,868

Goals Performance

Fannie Mae's Multifamily Goals (units) 300,000 60,000

Goal Performance (units) 401,145 82,674

Fannie Mae's Small Multifamily Goals (units) 10,000

Goal Performance (units) 12,043

Mortgages, properties, and units may count toward more than one goal. On certain tables, sum of entries may not equal totals, due to rounding.

Table 1B

Fannie Mae's Mortgage Purchases by Property Size and Housing Goal Status

Summary Table on Multifamily Housing Goal Performance

For Calendar year 2017

Qualifying Low-Income Purchases Qualifying Very Low-Income 

Purchases
© 2018 Fannie Mae. Trademarks of Fannie Mae. 33

2017 Annual Housing Activities Report and Annual Mortgage Report

Total Mortgages Eligible Qualifying Low-Income All Mortgage Purchases

To Qualify as Refinance Mortgages1

Low-Income Refinance1

Purchase of Loan Modifications of At-Risk Mortgages

 Owner-Occupied 1-Unit Properties/Mortgages:

 UPB ($ Millions) $134 $70 $176 

 Number of Mortgages 709 494 927

 Owner-Occupied 2-4 Unit Properties/Mortgages:

 UPB ($ Millions) $8 $2 $12 

 Number of Mortgages 28 13 37

 Total Loan Modifications of At-Risk Mortgages:

 UPB ($ Millions) $141 $72 $188 

 Number of Mortgages 737 507 964

1

An Enterprise's modification of a loan in accordance with the Make Home Affordable program announced on March 4, 2009, that is held in the Enterprise's portfolio or that is in a pool backing a 

security guaranteed by the Enterprise, shall be treated as a mortgage purchase for the purposes of the housing goals.

Table 1C

Fannie Mae's Mortgage Purchases by Mortgage Type and Housing Goal Status

Mortgages from At-Risk Loans that were Modified

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 34

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low-Income Purchases Qualifying Very Low-Income Purchases All Mortgage Purchases

Purchases of Single-Family Mortgages

 Owner-Occupied 2-4 Unit Properties/Mortgages:

 UPB ($ Millions) $1,130 $192 $3,002 

 Number of Mortgages 9,173 1,934 18,187

 Number of Units 10,867 2,216 22,041

 Investor Owned 1-4 Unit Properties/Mortgages:

 UPB ($ Millions) $8,818 $1,263 $34,350 

 Number of Mortgages 68,247 11,219 181,070

 Number of Units 95,434 15,793 226,003

Total Single-Family:

 UPB ($ Millions) $9,948 $1,455 $37,352 

 Number of Mortgages 77,420 13,153 199,257

 Number of Units 106,301 18,009 248,044

Mortgages and units may count toward more than one reporting category. On certain tables, sum of entries may not equal totals, due to rounding.

Table 1D

Distribution of Rental Units Financed by Purchases of Mortgages on Single-Family Rental Properties

Summary Table on Single-Family Housing Goal Performance

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 35

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

Income No More Than 50% of Median Income

 $UPB(Millions) $6,677 $6,677 $3,503 $7,140 $6,739 $7,201 $13,941 

 Number of Mortgages 60,561 60,561 32,033 62,328 61,231 62,823 124,054

 Portion of Qualifying or Total Mortgages Acquired 23.00% 100.00% 13.53% 27.85% 5.50% 6.81% 6.09%

Income More Than 50% But No More Than 60% of Median Income

 $UPB(Millions) $8,264 $0 $3,868 $6,415 $8,361 $6,446 $14,807 

 Number of Mortgages 58,452 0 27,497 45,771 59,314 46,021 105,335

 Portion of Qualifying or Total Mortgages Acquired 22.20% 0.00% 11.61% 20.45% 5.33% 4.99% 5.17%

Income More Than 60% But No More Than 80% of Median Income

 $UPB(Millions) $24,586 $0 $10,359 $18,937 $24,953 $19,023 $43,976 

 Number of Mortgages 144,283 0 62,101 115,669 147,078 116,293 263,371

 Portion of Qualifying or Total Mortgages Acquired 54.80% 0.00% 26.23% 51.69% 13.21% 12.61% 12.94%

Income More Than 80% But No More Than 100% of Median Income

 $UPB(Millions) $0 $0 $10,802 $0 $29,472 $23,756 $53,229 

 Number of Mortgages 0 0 54,835 0 145,579 124,826 270,405

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 23.16% 0.00% 13.07% 13.54% 13.28%

Income More Than 100% But No More Than 120% of Median Income

 $UPB(Millions) $0 $0 $3,934 $0 $29,969 $24,424 $54,393 

 Number of Mortgages 0 0 17,431 0 130,391 114,585 244,976

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 7.36% 0.00% 11.71% 12.43% 12.03%

Income More Than 120% of Median Income

 $UPB(Millions) $0 $0 $11,877 $0 $163,947 $122,772 $286,719 

 Number of Mortgages 0 0 42,843 0 570,062 457,312 1,027,374

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 18.10% 0.00% 51.19% 49.59% 50.46%

Missing

 $UPB(Millions) $0 $0 $0 $0 $12 $59 $71 

 Number of Mortgages 0 0 0 0 54 261 315

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 0.02%

All Income Levels1

 $UPB(Millions) $39,527 $6,677 $44,344 $32,492 $263,453 $203,682 $467,136 

 Number of Mortgages 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

 Portion of Qualifying or Total Mortgages Acquired 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

1

Includes "Missing."

Table 2

Distribution of Single-Family Owner-Occupied Mortgages

Purchased by Fannie Mae

By Income Class of Mortgagor(s)

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 36

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low-Income 

Purchases

Qualifying Very LowIncome PurchasesTotal Units Financed

Affordable At No More Than 30% of Median Income

$UPB(MILLIONS) $1,741 $1,741 $1,741 

Number of Units 24,620 24,620 24,620

6.47% 35.29% 3.90%

Affordable At More Than 30% But No More than 50% of Median Income

$UPB(MILLIONS) $2,085 $2,085 $2,085 

Number of Units 45,140 45,140 45,140

11.87% 64.71% 7.16%

Affordable At More Than 50% But No More than 60% of Median Income

$UPB(MILLIONS) $5,396 $5,396 

Number of Units 98,263 98,263

25.84% 15.58%

Affordable At More Than 60% But No More than 80% of Median Income

$UPB(MILLIONS) $16,350 $16,350 

Number of Units 212,214 212,214

55.81% 33.64%

Affordable At More Than 80% But No More than 100% of Median Income

$UPB(MILLIONS) $11,406 

Number of Units 106,698

16.91%

Affordable At More Than 100% But No More than 120% of Median Income

$UPB(MILLIONS) $6,990 

Number of Units 52,905

8.39%

Affordable At More Than 120% of Median Income

$UPB(MILLIONS) $11,695 

Number of Units 58,741

9.31%

Tenant Rent Missing

$UPB(MILLIONS) $5,024 

Number of Units 32,287

5.12%

All Income Levels2

$UPB(MILLIONS) $25,572 $3,826 $60,687 

Number of Units 380,237 69,760 630,868

Portion of Qualifying or Total Units Financed 100.00% 100.00% 100.00%

1

Based on actual rents before affordability estimation. Units where affordability was estimated, including all units in senior housing facilities and cooperatives, are included in 

"Tenant Rent Missing."

2

Includes "Tenant Rent Missing."

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Portion of Qualifying or Total Units Financed

Table 3A

Distribution of Rental Units

Financed by Multifamily Mortgages Purchased by Fannie Mae

By Affordability of Rent1

For Calendar year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 37

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low-Income 

Purchases

Qualifying Very LowIncome PurchasesTotal Units Financed

Affordable At No More Than 30% of Median Income

 UPB ($ Millions) $507 $507 $507

 Number of Units 3,747 3,747 3,747

 Portion of Qualifying or Total Units Financed 3.52% 20.81% 1.51%

Affordable At More Than 30% But No More than 50% of Median Income

 UPB ($ Millions) $949 $949 $949

 Number of Units 14,262 14,262 14,262

 Portion of Qualifying or Total Units Financed 13.42% 79.19% 5.75%

Affordable At More Than 50% But No More than 60% of Median Income

 UPB ($ Millions) $1,770 $1,770 

 Number of Units 24,495 24,495

 Portion of Qualifying or Total Units Financed 23.04% 9.88%

Affordable At More Than 60% But No More than 80% of Median Income

 UPB ($ Millions) $6,723 $6,723 

 Number of Units 63,797 63,797

 Portion of Qualifying or Total Units Financed 60.02% 25.72%

Affordable At More Than 80% But No More than 100% of Median Income

 UPB ($ Millions) $8,702 

 Number of Units 58,293

 Portion of Qualifying or Total Units Financed 23.50%

Affordable At More Than 100% But No More than 120% of Median Income

 UPB ($ Millions) $6,655 

 Number of Units 33,956

 Portion of Qualifying or Total Units Financed 13.69%

Affordable At More Than 120% of Median Income

 UPB ($ Millions) $10,362 

 Number of Units 37,889

 Portion of Qualifying or Total Units Financed 15.28%

Tenant Rent Missing

 UPB ($ Millions) $1,685 

 Number of Units 11,605

 Portion of Qualifying or Total Units Financed 4.68%

All Income Levels2

 UPB ($ Millions) $9,948 $1,455 $37,352 

 Number of Units 106,301 18,009 248,044

 Portion of Qualifying or Total Units Financed 100.00% 100.00% 100.00%

1

Based on actual rents before affordability estimation. Units where affordability was estimated are included in "Tenant Rent Missing."

2

Includes "Tenant Rent Missing."

Table 3B

Distribution of Rental Units

Financed by Purchases of Mortgages on Single-Family

Rental Properties By Affordability of Rent1

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 38

2017 Annual Housing Activities Report and Annual Mortgage Report

Family Income <= Family Income > Family Income <= Family Income > Qualifying Low- Total Mortgages

100% of Area 

Median

100% of Area 

Median

100% of Area

Median

100% of Area

Median

Income Area 

Purchase Money

Mortgages

Eligible To 

Qualify As

Low-Income Area

Purchase Money

Tract Income <= 80% of Area Median

 $UPB(Millions) $2,060 $2,247 $12,293 $13,565 $30,164 $30,164 

 Number of Mortgages 15,067 10,283 76,761 49,991 152,102 152,102

 Percentage of Eligible 9.91% 6.76% 50.47% 32.87% 100.00% 100.00%

80% < Tract Income < 100% of Area Median and Tract >= 30% Minority

 $UPB(Millions) $1,162 $0 $5,447 $0 $6,610 $17,243 

 Number of Mortgages 7,624 0 29,318 0 36,942 74,298

 Percentage of Eligible 10.26% 0.00% 39.46% 0.00% 49.72% 100.00%

80% < Tract Income < 100% of Area Median and Tract < 30% Minority

 $UPB(Millions) $1,370 $0 $0 $0 $1,370 $23,165 

 Number of Mortgages 9,686 0 0 0 9,686 127,122

 Percentage of Eligible 7.62% 0.00% 0.00% 0.00% 7.62% 100.00%

Tract Income >= 100% of Area Median1

 $UPB(Millions) $6,201 $0 $0 $0 $6,201 $175,602 

 Number of Mortgages 38,010 0 0 0 38,010 679,045

 Percentage of Eligible 5.60% 0.00% 0.00% 0.00% 5.60% 100.00%

Total

 $UPB(Millions) $10,792 $2,247 $17,740 $13,565 $44,344 $246,174 

 Number of Mortgages 70,387 10,283 106,079 49,991 236,740 1,032,567

 Percentage of Eligible 6.82% 1.00% 10.27% 4.84% 22.93% 100.00%

Table 4

Fannie Mae Single-Family Owner-Occupied Mortgage Purchases

Qualifying for the Low-Income Area Purchase Goal

by Method of Qualification

For Calendar Year 2017

1

Includes tracts with missing median incomes or missing percent minority.

Tract is in a Designated Disaster Area Tract is not in a Designated Disaster 

Area
© 2018 Fannie Mae. Trademarks of Fannie Mae. 39

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

American Indian or Alaskan Native2

 $UPB(Millions) $164 $34 $198 $223 $793 $838 $1,631 

 Number of Mortgages 1,137 324 1,108 1,587 3,604 4,314 7,918

 

 Portion of Qualifying or Total Mortgages Acquired 0.43% 0.53% 0.47% 0.71% 0.32% 0.47% 0.39%

 

Asian2

 $UPB(Millions) $3,135 $549 $4,231 $1,564 $22,318 $13,029 $35,348 

 Number of Mortgages 16,385 4,064 17,347 8,015 74,312 43,468 117,780

 

 Portion of Qualifying or Total Mortgages Acquired 6.22% 6.71% 7.33% 3.58% 6.67% 4.71% 5.79%

 

Black or African American2

 $UPB(Millions) $1,930 $367 $2,669 $1,900 $8,676 $7,609 $16,285 

 Number of Mortgages 12,864 3,260 15,382 13,436 39,299 38,705 78,004

 

 Portion of Qualifying or Total Mortgages Acquired 4.89% 5.38% 6.50% 6.00% 3.53% 4.20% 3.83%

 

Native Hawaiian or Other Pacific Islander2

 $UPB(Millions) $134 $21 $196 $161 $857 $949 $1,806 

 Number of Mortgages 784 185 877 886 3,163 3,480 6,643

 

 Portion of Qualifying or Total Mortgages Acquired 0.30% 0.31% 0.37% 0.40% 0.28% 0.38% 0.33%

 

White - Hispanic or Latino3

 $UPB(Millions) $4,292 $825 $6,215 $3,617 $21,986 $18,136 $40,122 

 Number of Mortgages 28,056 7,144 33,508 23,159 95,543 81,632 177,175

 

 Portion of Qualifying or Total Mortgages Acquired 10.66% 11.80% 14.15% 10.35% 8.58% 8.85% 8.70%

 

White - Non Hispanic or Latino

 $UPB(Millions) $26,548 $4,390 $25,997 $19,894 $177,505 $128,065 $305,570 

 Number of Mortgages 183,423 41,280 145,643 142,300 778,453 598,019 1,376,472

 

 Portion of Qualifying or Total Mortgages Acquired 69.66% 68.16% 61.52% 63.59% 69.90% 64.85% 67.61%

 

Two or More Minority Races4

 $UPB(Millions) $50 $8 $78 $53 $289 $250 $539 

 Number of Mortgages 272 63 348 305 1,070 997 2,067

 

 Portion of Qualifying or Total Mortgages Acquired 0.10% 0.10% 0.15% 0.14% 0.10% 0.11% 0.10%

 

Joint - either Borrower or Co-Borrower are of a Minority Group5

 $UPB(Millions) $288 $25 $781 $258 $5,523 $3,488 $9,011 

 Number of Mortgages 1,684 214 3,154 1,617 19,270 13,440 32,710

 

 Portion of Qualifying or Total Mortgages Acquired 0.64% 0.35% 1.33% 0.72% 1.73% 1.46% 1.61%

 

Information not Provided by Borrower or Co-Borrower6

 $UPB(Millions) $2,985 $457 $3,978 $4,810 $25,504 $31,288 $56,792 

 Number of Mortgages 18,689 4,026 19,373 32,337 98,989 137,855 236,844

 

 Portion of Qualifying or Total Mortgages Acquired 7.10% 6.65% 8.18% 14.45% 8.89% 14.95% 11.63%

 

Not Applicable

 $UPB(Millions) $0 $0 $0 $1 $0 $2 $2 

 Number of Mortgages 0 0 0 7 1 10 11

 

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

 

Data not Provided by Loan Seller7

 $UPB(Millions) $0 $0 $0 $11 $1 $27 $29 

 Number of Mortgages 2 1 0 119 5 201 206

 

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.05% 0.00% 0.02% 0.01%

 

Total

 $UPB(Millions) $39,527 $6,677 $44,344 $32,492 $263,453 $203,682 $467,136 

 Number of Mortgages 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

 

 Portion of Qualifying or Total Mortgages Acquired 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

 

Table 5A continues on next page.

Table 5A

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Race of Borrower(s) on Loan Application1

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 40

2017 Annual Housing Activities Report and Annual Mortgage Report

6

This category consists of mortgages where borrower and co-borrower race information is not provided in mail, internet, or telephone application, even if ethnicity data are reported.

2

If the borrower and co-borrower are both identified as the same minority race or different minority races, the loan is classified as the race of the borrower.

3

If the loan is classified as White (see footnote 1) and if either borrower or co-borrower is identified as Hispanic or Latino, the loan is classified as "White - Hispanic or Latino." The 

category "White - Non-Hispanic or Latino" includes loans where borrower and co-borrower are both identified as "Not Hispanic or Latino" or when the ethnicity is missing for both 

borrowers.

4

The loan is classified as "Two or More Minority Races" where: the borrower is identified as two or more minority races and either there is no co-borrower or the co-borrower is 

identified as one or more minority races, or one borrower's race is missing and the other borrower is identified as two or more minority races.

5

If either the borrower or co-borrower is identified as one or more minority race(s) and the other borrower is identified as White, the loan is classified as "Joint."

1

Borrowers are asked to report both Race and Ethnicity. Race associated with the loan is based on data for the borrower and, if any, co-borrower. Borrower and co-borrower may be 

identified with any combination of, and up to, 5 race categories: (1) American Indian or Alaska Native, (2) Asian, (3) Black or African American, (4) Native Hawaiian or Other Pacific 

Islander, and (5) White. A borrower or co-borrower identified as both White and one minority race is classified as the minority race. If race is known for one borrower but not the other 

borrower, the loan is classified according to the known race. A loan where one borrower is identified as White and the race of the other borrower is missing, or where both the 

borrower and co-borrower are identified as White, is categorized in one of the two White categories. Separately, ethnicity associated with a loan also is based on data for the 

borrower and, if any, co-borrower. Borrower and co-borrower may choose either (1) Hispanic or Latino or (2) Not Hispanic or Latino. In this table, the White race category is further 

categorized as either "Hispanic or Latino," or "Not Hispanic or Latino." Table 5B shows the ethnicity distribution of all loans acquired.

7

"Data not Provided by Loan Seller" includes any HMDA new data points submitted by lenders.

Table 5A

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Race of Borrower(s) on Loan Application1

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 41

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

Borrower and Co-Borrower are Hispanic or Latino:

 $UPB(Millions) $4,402 $874 $6,056 $4,013 $18,818 $17,125 $35,943 

 Number of Mortgages 28,841 7,592 33,275 25,786 84,847 79,493 164,340

 

 Portion of Qualifying or Total Mortgages Acquired 10.95% 12.54% 14.06% 11.52% 7.62% 8.62% 8.07%

 

Borrower and Co-Borrower are not Hispanic or Latino:

 $UPB(Millions) $31,941 $5,341 $33,687 $23,847 $214,170 $153,453 $367,623 

 Number of Mortgages 214,525 48,898 181,455 166,730 911,143 697,678 1,608,821

 

 Portion of Qualifying or Total Mortgages Acquired 81.48% 80.74% 76.65% 74.51% 81.81% 75.66% 79.03%

 

Joint - Either Borrower or Co-Borrower are Hispanic or Latino:2

 $UPB(Millions) $314 $23 $843 $296 $5,896 $4,285 $10,181 

 Number of Mortgages 1,894 200 3,605 1,821 21,564 16,867 38,431

 

 Portion of Qualifying or Total Mortgages Acquired 0.72% 0.33% 1.52% 0.81% 1.94% 1.83% 1.89%

 

Information not Provided by Borrower or Co-Borrower:3

 $UPB(Millions) $2,870 $438 $3,758 $4,323 $24,568 $28,788 $53,356 

 Number of Mortgages 18,034 3,870 18,405 29,305 96,149 127,862 224,011

 

 Portion of Qualifying or Total Mortgages Acquired 6.85% 6.39% 7.77% 13.10% 8.63% 13.87% 11.00%

 

Not Applicable:

 $UPB(Millions) $0 $0 $0 $1 $0 $3 $3 

 Number of Mortgages 0 0 0 5 1 14 15

 

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

 

Data Not Provided by Loan Seller:4

 $UPB(Millions) $0 $0 $0 $12 $1 $28 $29 

 Number of Mortgages 2 1 0 121 5 207 212

 

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.05% 0.00% 0.02% 0.01%

 

Total:

 $UPB(Millions) $39,527 $6,677 $44,344 $32,492 $263,453 $203,682 $467,136 

 Number of Mortgages 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

 

 Portion of Qualifying or Total Mortgages Acquired 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

 

4

"Data Not Provided by Loan Seller" includes any HMDA new data points submitted by lenders.

1

If ethnicity is known for one borrower but not the other, loan is classified according to the known ethnicity.

2

Joint means one borrower is of Hispanic or Latino ethnicity and the other is not, in any order.

3

This category consists of mortgages where borrower and co-borrower ethnicity (as Hispanic/Latino or not) information is not provided in mail, internet, or telephone application, even if race data are reported.

Table 5B

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Ethnicity of Borrower(s) on Loan Application1

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 42

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

All Male: 

 $UPB(Millions) $15,523 $2,642 $16,011 $10,296 $80,441 $55,744 $136,186 

 Number of Mortgages 103,313 23,711 87,793 70,552 350,177 254,408 604,585

 Portion of Qualifying or Total Mortgages Acquired 39.24% 39.15% 37.08% 31.53% 31.44% 27.59% 29.70%

 

All Female: 

 $UPB(Millions) $15,134 $3,073 $13,066 $11,720 $52,304 $39,830 $92,133 

 Number of Mortgages 104,424 28,551 77,117 83,450 255,957 203,345 459,302

 Portion of Qualifying or Total Mortgages Acquired 39.66% 47.14% 32.57% 37.29% 22.98% 22.05% 22.56%

 

Male and Female: 

 $UPB(Millions) $7,187 $704 $13,085 $7,446 $116,106 $88,247 $204,353 

 Number of Mortgages 44,745 5,953 60,905 48,850 449,504 374,203 823,707

 Portion of Qualifying or Total Mortgages Acquired 16.99% 9.83% 25.73% 21.83% 40.36% 40.58% 40.46%

 

Not Applicable: 

 $UPB(Millions) $0 $0 $0 $0 $0 $0 $0 

 Number of Mortgages 0 0 0 0 0 0 0

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

 

Not Provided: 

 $UPB(Millions) $1,682 $258 $2,182 $3,031 $14,601 $19,860 $34,461 

 Number of Mortgages 10,812 2,345 10,925 20,911 58,066 90,151 148,217

 Portion of Qualifying or Total Mortgages Acquired 4.11% 3.87% 4.61% 9.34% 5.21% 9.78% 7.28%

 

Missing:2

 $UPB(Millions) $0 $0 $0 $0 $1 $2 $3 

 Number of Mortgages 2 1 0 5 5 14 19

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

 

Total: 

 $UPB(Millions) $39,527 $6,677 $44,344 $32,492 $263,453 $203,682 $467,136 

 Number of Mortgages 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

 Portion of Qualifying or Total Mortgages Acquired 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

 

2

"Missing" includes any HMDA new data points submitted by lenders.

1

Borrower and co-borrower with a "Not Applicable" or "Not Provided" are placed in the specific gender of the borrower or co-borrower.

Table 6

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Gender of Borrower(s)1

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 43

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

Minority < 10% 59,888 13,983 20,193 49,157 263,411 205,292 468,703

10% <= Minority < 20% 63,427 13,846 33,549 47,224 288,234 212,295 500,529

20% <= Minority < 30% 41,169 9,267 28,917 31,503 181,815 139,109 320,924

30% <= Minority < 50% 49,145 11,014 62,459 39,806 206,755 171,153 377,908

50% <= Minority < 80% 35,119 8,490 59,876 34,103 126,925 125,933 252,858

80% <= Minority <= 100% 14,547 3,961 31,703 21,975 46,435 68,273 114,708

Tract Missing / Unable to Classify 1 0 43 0 134 66 200

Total: 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

Table 7

Distribution of Single-Family Owner-Occupied Mortgage Purchases

By Minority Concentration of Census Tract

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 44

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Minority < 10% 14,242 2,920 28,779

10% <= Minority < 20% 40,835 6,891 82,673

20% <= Minority < 30% 47,921 7,974 93,658

30% <= Minority < 50% 93,044 12,496 161,982

50% <= Minority < 80% 111,003 17,545 172,977

80% <= Minority <= 100% 73,192 21,934 90,799

Tract Missing / Unable to Classify 0 0 0

Total: 380,237 69,760 630,868

Table 8A

Distribution of Fannie Mae's Multifamily Mortgage Purchases

By Minority Concentration of Census Tract

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 45

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Minority < 10% 13,899 3,012 25,577

10% <= Minority < 20% 18,981 3,095 43,134

20% <= Minority < 30% 14,508 2,270 35,650

30% <= Minority < 50% 20,219 3,348 51,722

50% <= Minority < 80% 21,088 3,322 50,082

80% <= Minority <= 100% 17,600 2,960 41,814

Tract Missing / Unable to Classify 6 2 65

Total: 106,301 18,009 248,044

Table 8B

Distribution of Rental Units Financed by Purchases of Mortgages on

Single-Family Rental Properties by Minority Concentration of Census Tract

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 46

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

Income <=50% of Median Income

 Minority < 10% 13,983 13,983 3,097 13,520 14,205 13,658 27,863

 10% <= Minority < 30% 23,113 23,113 9,028 21,126 23,331 21,262 44,593

 30% <= Minority < 50% 11,014 11,014 8,607 10,899 11,127 10,999 22,126

 50% <= Minority < 80% 8,490 8,490 7,480 9,975 8,571 10,028 18,599

 80% <= Minority <= 100% 3,961 3,961 3,821 6,808 3,997 6,876 10,873

 Tract Missing / Unable to Classify 0 0 0 0 0 0 0

 Subtotal 60,561 60,561 32,033 62,328 61,231 62,823 124,054

50% < Income <=60% of MSA Median Income

 Minority < 10% 13,541 0 2,491 9,896 13,847 9,970 23,817

 10% <= Minority < 30% 23,065 0 7,688 16,132 23,331 16,203 39,534

 30% <= Minority < 50% 10,775 0 7,749 8,254 10,920 8,303 19,223

 50% <= Minority < 80% 7,808 0 6,515 7,063 7,913 7,096 15,009

 80% <= Minority <= 100% 3,263 0 3,054 4,426 3,303 4,449 7,752

 Tract Missing / Unable to Classify 0 0 0 0 0 0 0

 Subtotal 58,452 0 27,497 45,771 59,314 46,021 105,335

60% < Income <=80% of MSA Median Income

 Minority < 10% 32,364 0 5,391 25,741 33,305 25,948 59,253

 10% <= Minority < 30% 58,418 0 17,579 41,469 59,429 41,662 101,091

 30% <= Minority < 50% 27,356 0 17,779 20,653 27,782 20,743 48,525

 50% <= Minority < 80% 18,821 0 14,721 17,065 19,150 17,145 36,295

 80% <= Minority <= 100% 7,323 0 6,630 10,741 7,411 10,795 18,206

 Tract Missing / Unable to Classify 1 0 1 0 1 0 1

 Subtotal 144,283 0 62,101 115,669 147,078 116,293 263,371

80% < Income <=100% of MSA Median Income

 Minority < 10% 0 0 4,785 0 32,615 27,500 60,115

 10% <= Minority < 30% 0 0 16,175 0 60,176 45,595 105,771

 30% <= Minority < 50% 0 0 15,508 0 27,623 22,638 50,261

 50% <= Minority < 80% 0 0 12,481 0 18,192 18,022 36,214

 80% <= Minority <= 100% 0 0 5,885 0 6,971 11,068 18,039

 Tract Missing / Unable to Classify 0 0 1 0 2 3 5

 Subtotal 0 0 54,835 0 145,579 124,826 270,405

100% < Income <=120% of MSA Median Income

 Minority < 10% 0 0 1,337 0 30,655 25,267 55,922

 10% <= Minority < 30% 0 0 3,733 0 54,781 42,905 97,686

 30% <= Minority < 50% 0 0 3,825 0 24,004 21,083 45,087

 50% <= Minority < 80% 0 0 5,093 0 15,155 16,124 31,279

 80% <= Minority <= 100% 0 0 3,436 0 5,789 9,202 14,991

 Tract Missing / Unable to Classify 0 0 7 0 7 4 11

 Subtotal 0 0 17,431 0 130,391 114,585 244,976

120% MSA Median Income < Income

 Minority < 10% 0 0 3,092 0 138,784 102,912 241,696

 10% <= Minority < 30% 0 0 8,263 0 249,001 183,717 432,718

 30% <= Minority < 50% 0 0 8,991 0 105,299 87,352 192,651

 50% <= Minority < 80% 0 0 13,586 0 57,944 57,479 115,423

 80% <= Minority <= 100% 0 0 8,877 0 18,964 25,827 44,791

 Tract Missing / Unable to Classify 0 0 34 0 70 25 95

 Subtotal 0 0 42,843 0 570,062 457,312 1,027,374

Borrower Income Missing

 Minority < 10% 0 0 0 0 0 37 37

 10% <= Minority < 30% 0 0 0 0 0 60 60

 30% <= Minority < 50% 0 0 0 0 0 35 35

 50% <= Minority < 80% 0 0 0 0 0 39 39

 80% <= Minority <= 100% 0 0 0 0 0 56 56

 Tract Missing / Unable to Classify 0 0 0 0 54 34 88

 Subtotal 0 0 0 0 54 261 315

Total: 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

Table 9

Distribution of Single-Family Owner-Occupied Mortgage Purchases

Minority Percentage of Census Tract by Income of Borrower

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 47

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

Alabama 2,727 658 2,896 2,283 13,454 9,698 23,152

Alaska 416 81 255 498 1,587 1,545 3,132

Arizona 10,451 2,298 9,084 7,758 44,025 29,101 73,126

Arkansas 1,505 400 1,862 1,204 7,126 5,351 12,477

California 9,882 1,283 21,375 30,220 93,584 171,186 264,770

Colorado 8,578 1,769 7,679 11,779 33,262 35,662 68,924

Connecticut 4,132 1,047 1,881 2,032 11,371 7,095 18,466

Delaware 1,156 300 669 939 4,834 3,112 7,946

District of Columbia 692 122 1,106 673 2,648 2,025 4,673

Florida 16,706 3,203 24,300 11,344 92,066 49,077 141,143

Georgia 7,307 1,603 7,115 5,808 37,137 25,812 62,949

Hawaii 498 68 657 973 2,951 3,981 6,932

Idaho 3,160 743 1,829 1,588 11,711 5,722 17,433

Illinois 13,086 3,513 7,481 8,167 41,543 34,067 75,610

Indiana 6,057 1,597 2,760 3,906 20,756 13,801 34,557

Iowa 5,052 1,571 1,745 2,601 13,456 8,314 21,770

Kansas 2,184 527 838 1,384 7,903 5,262 13,165

Kentucky 3,423 913 3,171 2,004 11,082 7,384 18,466

Louisiana 1,879 399 3,233 1,896 10,395 9,538 19,933

Maine 686 183 346 845 2,969 2,695 5,664

Maryland 6,956 1,877 4,859 6,670 21,192 19,027 40,219

Massachusetts 6,161 1,296 4,096 6,588 21,029 21,680 42,709

Michigan 10,170 2,636 8,707 8,812 36,293 34,046 70,339

Minnesota 12,108 3,669 8,352 6,862 30,970 21,042 52,012

Mississippi 756 152 982 913 4,894 4,846 9,740

Missouri 6,022 1,658 6,532 4,580 21,185 16,782 37,967

Montana 1,038 239 508 848 4,478 3,446 7,924

Nebraska 3,144 818 1,347 1,520 9,405 5,931 15,336

Nevada 3,499 677 2,999 3,168 16,944 12,175 29,119

New Hampshire 1,571 362 858 1,306 5,738 4,481 10,219

New Jersey 5,657 1,064 3,317 4,405 27,415 22,971 50,386

New Mexico 1,381 347 1,309 1,056 6,530 4,145 10,675

New York 7,653 1,259 5,490 5,460 35,641 28,398 64,039

North Carolina 9,827 2,363 10,404 5,795 42,864 22,725 65,589

North Dakota 522 109 160 521 2,031 1,862 3,893

Ohio 9,740 2,487 4,373 5,901 33,230 21,780 55,010

Oklahoma 2,331 580 3,555 1,596 9,870 6,416 16,286

Oregon 3,217 441 3,533 4,061 19,451 18,716 38,167

Pennsylvania 9,810 2,493 4,935 6,873 36,758 24,441 61,199

Rhode Island 782 119 366 704 3,475 2,699 6,174

South Carolina 4,606 1,073 6,834 2,690 22,270 11,404 33,674

South Dakota 1,238 350 445 711 3,805 2,500 6,305

Tennessee 4,628 1,044 3,363 3,903 21,976 15,102 37,078

Texas 14,640 2,457 23,607 13,170 91,489 67,960 159,449

Utah 5,422 1,122 2,838 4,595 17,777 14,599 32,376

Vermont 349 57 147 400 1,564 1,259 2,823

Virginia 9,692 2,354 7,553 7,261 31,567 23,586 55,153

Washington 9,909 2,165 10,537 9,333 36,946 33,467 70,413

West Virginia 581 155 424 506 2,581 2,352 4,933

Wisconsin 9,616 2,682 3,559 4,909 27,262 18,130 45,392

Wyoming 660 177 256 619 2,197 1,960 4,157

Guam 2 0 26 8 39 60 99

Puerto Rico 30 1 144 122 850 1,639 2,489

Virgin Islands 1 0 43 0 80 32 112

Other Territories 0 0 0 0 0 0 0

Unable to Geocode 0 0 0 0 53 34 87

Total 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

Table 10A

Distribution of Fannie Mae's Single-Family Owner-Occupied Mortgage Purchases

By State and Territory

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 48

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Alabama 5,754 1,949 8,945

Alaska 464 20 530

Arizona 12,760 1,623 19,280

Arkansas 2,870 649 3,542

California 14,975 5,686 65,872

Colorado 7,713 1,131 14,361

Connecticut 1,673 699 3,966

Delaware 1,198 21 1,308

District of Columbia 990 707 2,322

Florida 19,582 3,421 50,487

Georgia 32,259 5,057 45,446

Hawaii 113 79 531

Idaho 1,075 106 2,157

Illinois 4,960 940 10,895

Indiana 8,506 1,023 11,978

Iowa 2,166 885 2,881

Kansas 5,433 1,527 6,410

Kentucky 4,667 568 5,589

Louisiana 3,818 324 8,156

Maine 447 132 649

Maryland 9,410 2,405 12,595

Massachusetts 2,175 512 5,671

Michigan 7,120 1,157 10,867

Minnesota 3,997 755 4,896

Mississippi 3,616 317 4,048

Missouri 5,545 1,529 7,117

Montana 739 117 1,067

Nebraska 942 469 1,578

Nevada 10,438 1,515 13,407

New Hampshire 742 13 889

New Jersey 2,053 1,362 2,841

New Mexico 3,725 264 4,612

New York 6,942 2,977 16,879

North Carolina 22,482 3,013 29,929

North Dakota 198 1 332

Ohio 15,911 5,781 18,794

Oklahoma 3,873 1,147 4,966

Oregon 3,876 682 8,877

Pennsylvania 6,812 549 11,200

Rhode Island 294 114 812

South Carolina 9,587 1,421 15,665

South Dakota 127 50 128

Tennessee 11,646 2,526 18,189

Texas 80,794 10,222 117,982

Utah 5,128 341 6,222

Vermont 0 0 0

Virginia 16,699 2,483 22,858

Washington 9,693 936 16,910

West Virginia 320 217 666

Wisconsin 3,846 335 5,194

Wyoming 84 3 372

Guam 0 0 0

Puerto Rico 0 0 0

Virgin Islands 0 0 0

Other Territories 0 0 0

Unable to Geocode 0 0 0

Total 380,237 69,760 630,868

Table 10B

Distribution of Fannie Mae's

Multifamily Mortgage Purchases by State And Territory

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 49

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Alabama 914 184 1,741

Alaska 443 37 668

Arizona 3,509 428 7,857

Arkansas 736 130 1,114

California 10,551 1,174 54,941

Colorado 2,700 286 8,020

Connecticut 1,954 399 2,657

Delaware 351 54 611

District of Columbia 447 128 1,039

Florida 3,351 370 13,429

Georgia 2,696 315 6,143

Hawaii 172 25 1,089

Idaho 1,308 152 2,161

Illinois 5,033 1,109 9,166

Indiana 1,792 316 2,809

Iowa 776 234 974

Kansas 655 158 954

Kentucky 913 177 1,306

Louisiana 902 115 2,193

Maine 468 66 716

Maryland 2,186 340 3,730

Massachusetts 5,229 1,128 7,785

Michigan 2,831 494 4,455

Minnesota 2,456 504 3,432

Mississippi 247 27 538

Missouri 3,008 803 3,901

Montana 465 46 891

Nebraska 579 106 831

Nevada 1,605 183 4,163

New Hampshire 814 146 1,093

New Jersey 3,997 460 7,986

New Mexico 657 138 1,417

New York 5,018 1,008 13,931

North Carolina 2,920 445 5,757

North Dakota 119 38 166

Ohio 4,399 1,212 5,782

Oklahoma 1,071 200 1,672

Oregon 1,769 111 5,836

Pennsylvania 4,326 1,047 6,149

Rhode Island 912 89 1,416

South Carolina 902 150 2,470

South Dakota 222 50 314

Tennessee 1,918 279 4,037

Texas 5,896 701 17,490

Utah 1,992 341 3,822

Vermont 139 18 279

Virginia 2,992 419 5,194

Washington 4,387 612 8,932

West Virginia 134 18 241

Wisconsin 3,097 952 3,759

Wyoming 333 85 455

Guam 0 0 1

Puerto Rico 4 0 467

Virgin Islands 6 2 57

Other Territories 0 0 0

Unable to Geocode 0 0 7

Total 106,301 18,009 248,044

Table 10C

Distribution of Rental Units Financed by Purchases of Mortgages on

Single-Family Rental Properties by State And Territory

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 50

2017 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Qualifying Very Qualifying Low- Qualifying Total Purchase Total Refinance Total Mortgages

Low-Income Low-Income Income Area Low-Income Money Mortgages Acquired

Purchase Money Purchase Money Purchase Money Refinance Mortgages Acquired

Mortgages Mortgages Mortgages Mortgages Acquired

0% < LTV <= 60%

 $UPB(Millions) $3,303 $814 $2,399 $12,393 $20,265 $61,314 $81,579 

 Number of Mortgages 27,278 8,692 16,746 93,558 102,643 307,898 410,541

 Portion of Total 10.36% 14.35% 7.07% 41.81% 9.22% 33.39% 20.17%

 

60% < LTV <= 80%

 $UPB(Millions) $13,930 $2,480 $15,173 $17,241 $113,188 $121,216 $234,405 

 Number of Mortgages 90,599 21,950 78,112 111,552 452,089 522,940 975,029

 Portion of Total 34.41% 36.24% 32.99% 49.85% 40.59% 56.71% 47.89%

 

80% < LTV <= 90%

 $UPB(Millions) $5,295 $834 $6,756 $1,830 $45,605 $15,356 $60,961 

 Number of Mortgages 33,854 7,489 32,961 11,814 180,521 64,581 245,102

 Portion of Total 12.86% 12.37% 13.92% 5.28% 16.21% 7.00% 12.04%

 

90% < LTV <= 95%

 $UPB(Millions) $8,686 $1,215 $11,775 $605 $61,345 $4,528 $65,872 

 Number of Mortgages 57,395 10,938 61,926 4,108 258,411 19,836 278,247

 Portion of Total 21.80% 18.06% 26.16% 1.84% 23.20% 2.15% 13.67%

 

95% < LTV <= 100%

 $UPB(Millions) $8,314 $1,334 $8,242 $157 $23,001 $487 $23,488 

 Number of Mortgages 54,170 11,492 46,995 1,017 119,630 2,580 122,210

 Portion of Total 20.57% 18.98% 19.85% 0.45% 10.74% 0.28% 6.00%

 

100% < LTV

 $UPB(Millions) $0 $0 $0 $265 $46 $763 $808 

 Number of Mortgages 0 0 0 1,719 404 4,189 4,593

 Portion of Total 0.00% 0.00% 0.00% 0.77% 0.04% 0.45% 0.23%

 

Missing LTV

 $UPB(Millions) $0 $0 $0 $0 $3 $19 $22 

 Number of Mortgages 0 0 0 0 11 97 108

 Portion of Total 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.01%

 

Total

 $UPB(Millions) $39,527 $6,677 $44,344 $32,492 $263,453 $203,682 $467,136 

 Number of Mortgages 263,296 60,561 236,740 223,768 1,113,709 922,121 2,035,830

 Portion of Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

 

1

 Does not include second mortgages and non-applicable categories.

Table 11

Distribution of Single-Family Owner-Occupied Mortgage Purchases1

By LTV Category

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 51

2017 Annual Housing Activities Report and Annual Mortgage Report

First-Time Repeat Buyer Status Total

Borrower Income Buyer Buyer Not Available Mortgages

Mortgages Mortgages Mortgages

Income <= 50% of Area Median Income (AMI)

 $UPB(Millions) $4,733 $1,944 $0 $6,677 

 Number of Mortgages 42,511 18,050 0 60,561

 Portion of Total Mortgages Acquired 8.42% 3.42% . 5.87%

Income >50% But <= 60% of AMI

 $UPB(Millions) $5,715 $2,549 $0 $8,264 

 Number of Mortgages 40,153 18,299 0 58,452

 Portion of Total Mortgages Acquired 7.95% 3.47% . 5.66%

Income >60% But <= 80% of AMI

 $UPB(Millions) $15,877 $8,709 $0 $24,586 

 Number of Mortgages 92,663 51,620 0 144,283

 Portion of Total Mortgages Acquired 18.35% 9.78% . 13.97%

Income >80% But <= 100% of AMI

 $UPB(Millions) $16,664 $12,214 $0 $28,878 

 Number of Mortgages 81,084 60,497 0 141,581

 Portion of Total Mortgages Acquired 16.06% 11.47% . 13.71%

Income >100% But <= 120% of AMI

 $UPB(Millions) $14,868 $14,324 $0 $29,192 

 Number of Mortgages 63,284 62,330 0 125,614

 Portion of Total Mortgages Acquired 12.53% 11.81% . 12.17%

Income >120% of AMI

 $UPB(Millions) $55,346 $93,224 $0 $148,570 

 Number of Mortgages 185,274 316,763 0 502,037

 Portion of Total Mortgages Acquired 36.69% 60.04% . 48.62%

Missing

 $UPB(Millions) $3 $5 $0 $8 

 Number of Mortgages 15 24 0 39

 Portion of Total Mortgages Acquired 0.00% 0.00% . 0.00%

All Income Levels1

 $UPB(Millions) $113,205 $132,968 $0 $246,174 

 Number of Mortgages 504,984 527,583 0 1,032,567

 Portion of Total Mortgages Acquired 100.00% 100.00% . 100.00%

1

Includes "Borrower Income Missing."

Table 12A

Distribution of Single-Family Owner-Occupied Purchase Money Mortgages

Acquired by Fannie Mae

By Income Class and First Time/Repeat Borrower Status

For Calendar Year 2017
© 2018 Fannie Mae. Trademarks of Fannie Mae. 52

2017 Annual Housing Activities Report and Annual Mortgage Report

First-Time Repeat Status of Total

Subgoal Qualifying Status Buyer Buyer Buyer Mortgages

Mortgages Mortgages Not Available

Subgoal-Qualifying Mortgages

 $UPB(Millions) $23,783 $12,990 $0 $36,773 

 Number of Mortgages 125,034 64,010 0 189,044

 Percentage of Total 24.76% 12.13% . 18.31%

Non-Qualifying Mortgages

 $UPB(Millions) $89,422 $119,979 $0 $209,400 

 Number of Mortgages 379,950 463,573 0 843,523

 Percentage of Total 75.24% 87.87% . 81.69%

Total Mortgages

 $UPB(Millions) $113,205 $132,968 $0 $246,174 

 Number of Mortgages 504,984 527,583 0 1,032,567

 Percentage of Total 100.00% 100.00% . 100.00%

Table 12B

Single-Family Owner-Occupied Purchase Money Mortgages Acquired by

Fannie Mae by First-Time/Repeat Borrower Status, for Mortgages Qualifying

and Not Qualifying for the Low-Income Area Purchase SUBGOAL

For Calendar Year 2017