DRAFT 2018 AHAR INTRO VERSION 2.11.19

2018

Annual Housing Activities Report

Annual Mortgage Report
©2019 Fannie Mae. Trademarks of Fannie Mae. 2

2018 Annual Housing Activities Report and Annual Mortgage Report

Introduction

The Critical Role of Housing Supply

Our nation’s inadequate housing supply, particularly housing 

that families can reasonably afford in the communities where 

they work and live, is the greatest challenge facing the U.S. 

housing and mortgage markets that Fannie Mae serves.

The demand for quality, affordable housing in communities 

that offer employment, educational opportunities, and 

reasonable transportation is as high as it has ever been. 

Yet homebuilders, apartment developers, state and local 

housing agencies, and mortgage lenders find it increasingly 

difficult, if not impossible, to meet the demand. The result is 

a growing divide between those who can bear the cost of a 

home or apartment in job-rich and environmentally healthy 

communities, and those who cannot. The former have access 

to better schools, community services, health care, career 

opportunities, and shorter commutes. The latter often do not. 

Census Bureau data from the American Community Survey 

illustrates the challenge. More than half of all renter families 

are currently spending more than 30 percent of their incomes 

on housing. This represents the largest number of costburdened families in the 26-year history of the survey. In fact, 

at 42 percent, housing costs are the largest single component 

of the Consumer Price Index, rising more in the last 15 years 

than either education or health care. Energy costs only add 

to the burden for low-income households. A study by Energy 

Efficiency for All found that the ratio of energy spending to 

annual income for low-income households was more than two 

times the ratio for median-income households.

MARCH 13, 2019

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 8

Charter Act Requirements 10

Multifamily Activities 18

Affordable Housing Partnerships 20

Other Charter Act Requirements 21

The Annual Mortgage Report (AMR) 23

At Fannie Mae, our chartered affordable housing mission calls 

us to help bridge this divide, to work with our customers and 

partners in the U.S. housing finance system to overcome the 

many challenges Americans face in buying, owning, or renting a 

home affordably. 

In this report, we provide an assessment of our efforts in 

2018 to fulfill our affordable housing mission. We achieved 

meaningful successes in attaining our affordable housing goals. 

However, as wages have not grown at the same pace as housing 

costs, there remains in many housing markets a stark mismatch 

between the supply of housing and demand. This mismatch 

will have an increasingly negative effect on our customers, the 

communities they serve, and the housing economy as a whole 

until viable and successful strategies for addressing it emerge. 

To support the better housing 

ecosystem we know is possible, 

we first need to imagine it.
©2019 Fannie Mae. Trademarks of Fannie Mae. 3

2018 Annual Housing Activities Report and Annual Mortgage Report

As a provider of liquidity to the housing finance industry, we 

work to improve the efficiency of the mortgage market and 

make mortgages widely available at a relatively low cost. 

However, we firmly believe that those mortgages must be 

sustainable, made only to creditworthy borrowers likely to 

meet their obligations. 

A critical lesson of the last financial crisis is that unsound 

lending practices not only put taxpayers at risk, but also harm 

those borrowers who are extended loans that they may not 

have the ability to repay.

But no mortgage is sustainable if a constrained supply of 

housing makes purchasing a home out of reach. Therefore, 

Fannie Mae’s approach to housing affordability is increasingly 

focused on the need for more housing supply and the ways that 

Fannie Mae can influence it within the confines of our Charter 

and risk parameters.

While the problem is complex, the housing market solutions 

are straightforward:

• Reduce the costs of owning or renting a home, and/or

• Increase the supply of affordable single-family and 

multifamily housing where it is most needed through 

preservation or new construction.

Promoting Sustainable 

Homeownership

The challenges confronting homeowners and renters might 

be different, but the need to own or rent an affordable home 

makes them kindred. Furthermore, according to research and 

survey data collected by Fannie Mae and others, indications are 

that the propensity to want to own a home will ultimately be 

no different for current and future generations than it has been 

for past generations – albeit a deferred desire for many young 

families today because of the inadequate supply of affordable 

for-sale housing in the places they want to live.

In 2018, Fannie Mae met or exceeded each of the singlefamily mortgage housing goal benchmarks established by 

our regulator, the Federal Housing Finance Agency, based on 

our preliminary assessment and currently available data. For 

instance, more than 28 percent of the single-family owneroccupied first lien mortgages that Fannie Mae acquired 

financed homes affordable to low- income borrowers earning 

at or less than 80 percent of area median income (AMI), and 

more than 6 percent of the single- family owner-occupied 

first lien mortgages that Fannie Mae acquired financed homes 

affordable to very low-income borrowers earning at or less 

than 50 percent of AMI. Moreover, we estimate that more 

than 50 percent of the single-family owner-occupied first lien 

mortgages Fannie Mae acquired were for homes affordable to 

families earning at or below 120 percent of AMI.

3.0

3.5

4.0

4.5

5.0

5.5

6.0

2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018

Millions

Class A Class B/C

Limited Growth in Affordable Rentals

While higher-priced Class A apartments have increased significantly since 2010, 

the supply of more moderately priced Class B and C apartments have stay 

relatively flat.

Source: Reis Inc.

Limited Growth in 

Affordable Rentals

While higher-priced Class A 

apartments have increased 

significantly since 2010, the supply 

of more moderately priced Class 

B and C apartments have stayed 

relatively flat.

Source: Reis Inc.
©2019 Fannie Mae. Trademarks of Fannie Mae. 4

2018 Annual Housing Activities Report and Annual Mortgage Report

This performance demonstrated the central role Fannie Mae 

plays in financing mortgages for families of modest means. 

In fulfilling this role, we balance the need to expand access to 

affordable housing finance options while maintaining strong, 

sustainable credit standards that do not place undue risk on 

borrowers, taxpayers, or the housing finance system overall.

Fannie Mae’s HomeReady® is a concrete example of 

our approach to creating opportunities for sustainable 

homeownership. HomeReady provides lenders the option of 

offering loans with lower down payments. Down payments, 

especially for first-time homebuyers, are one of the singlebiggest barriers to homeownership. With HomeReady, Fannie 

Mae has provided lenders a simplified, streamlined, and 

sustainable way to help such borrowers become successful 

homeowners without adding excessive credit risk. Indeed, firsttime homebuyers are an important part of our business. 

All told, in 2018, 50.6 percent of all single-family owneroccupied home purchase loans financed by Fannie Mae were 

to first-time homebuyers.

More than 742 of our lender customers in communities across 

the country delivered HomeReady loans in 2018. Deliveries of 

HomeReady loans to Fannie Mae increased from about 110,000 

loans in 2017 to more than 170,000 loans in 2018. 

HomeReady demonstrates Fannie Mae’s ability to manage 

credit risk associated with low down payment loans. 

HomeReady contains underwriting flexibilities that expand 

access to credit responsibly, while recognizing the unique 

needs of low- and very low-income borrowers, moderateincome borrowers, and first-time homebuyers. These 

flexibilities allow the inclusion of rental unit or board income, 

as well as financial support from non-occupant borrowers, such 

as parents. Lenders can make HomeReady loans with a degree 

of certainty and simplicity that removes administrative barriers 

and costs, yet ensures credit is being delivered sustainably. 

The success of HomeReady is the result of an approach to 

innovation that relies on testing new ways to help lenders 

serve more borrowers, often with initiatives that, if successful, 

can be expanded safely. These targeted product or process 

initiatives are a recognition that the needs and expectations 

of our customers, as well as the homeowners and renters our 

customers serve, will change in the years ahead. Fannie Mae 

wants to help its customers find new ways to meet these needs.

Supply and Demand: Out of Sync

0

2011 2012 2013 2014 2015 2016 2017

20

40

60

80

100

120

140

160

180

National Housing Inventory

Housing Inventory, <75% Median Price

National Home Price Index

Home Price Index, <75% Median Price

Home purchase prices and available housing inventory have diverged since 

2010, and the gap worsens at the more affordable end of the market.

Source: CoreLogic and Fannie Mae

Supply and Demand: Out of Sync

Home purchase prices and available housing inventory 

have diverged since 2010, and the gap worsens at the 

more affordable end of the market.

Source: CoreLogic and Fannie Mae

We balance the need to expand access to affordable housing finance 

options while maintaining strong, sustainable credit standards.
©2019 Fannie Mae. Trademarks of Fannie Mae. 5

2018 Annual Housing Activities Report and Annual Mortgage Report

Leading in Affordable Multifamily 

Housing Finance

Fannie Mae is also building new capabilities to serve the 

evolving needs of the nation’s multifamily rental market. These 

new capabilities build on Fannie Mae’s long track record in 

providing stable, essential mortgage capital to create and to 

preserve badly needed rental housing that is affordable to 

families of modest incomes.

We financed more than $65 billion in lending to support 

approximately 770,000 units of rental housing in 2018. More 

than 90 percent of the multifamily units financed were 

affordable to families earning at or below 120 percent of 

the area median income (AMI), providing support for both 

workforce housing and affordable housing. 

Fannie Mae’s Multifamily business is also an innovator in 

financing housing that is sustainable in the broadest sense. 

Through our Green Financing program, we finance properties 

with Green Building Certifications or loans to finance 

meaningful reductions in energy or water consumption. We 

began Green Financing in 2010 as a small test-and-learn 

initiative to identify ways to make properties less costly to 

operate and rent, benefiting the owners and families who live 

there, while also improving the environment in the community 

where the property is located. In 2018, Fannie Mae’s Green 

Financing volume was $20.1 billion.

Property owners across the United States have leveraged Fannie 

Mae’s Green financing program to reduce energy and water 

usage at more than 2,000 multifamily properties since the first 

loan in 2012, resulting in a Green Financing portfolio of more 

than $50 billion. The improvements have saved property owners 

and renters an estimated $105 million in utility costs, lowered 

utility bills for renters by $145 per year and saved nearly 5.9 

billion gallons of water usage annually. More than 550,000 units 

financed by Fannie Mae have been retrofitted or have green 

building certifications, allowing more and more families and 

individuals to live in greener, healthier apartment units.

In 2018, Fannie Mae resumed making equity investments in 

Low-Income Housing Tax Credit (LIHTC) properties, providing 

crucial funding for affordable housing nationwide. Historically, 

LIHTC has been, and remains, one of the pillars of privatesector investment in the preservation and creation of rental 

housing for very low- and low-income families. Since its 

inception, the LIHTC program’s private capital investments 

have made possible more than 3 million units of housing 

affordable to those earning 60 percent or less of AMI. Fannie 

Mae’s LIHTC investments are being consciously targeted to 

areas and projects where the housing is most needed. 

Fannie Mae also continues to lead the market in providing 

secondary market debt financing to create, preserve, and 

improve affordable rental housing for our nation’s workforce. 

In 2018, our Multifamily Affordable Housing debt business 

provided $6 billion in financing to support affordable rental 

housing for low- and very low-income renters, with nearly half 

of the units we financed affordable to families making less 

than 50 percent of AMI. We also provided an additional $1.4 

billion in financing to affordable state and local workforce 

housing initiatives in 47 communities across the United States. 

We ramped up our support to Public Housing Authorities in 

their efforts to revitalize and expand the supply of affordable 

housing stock for very low-income renters, and incentivized 

borrowers to create safer and healthier living environments via 

our Healthy Housing RewardsTM program.

Fannie Mae continues to lead 

the market in providing secondary 

market debt financing to create, 

preserve, and improve affordable 

rental housing for our nation’s 

workforce.
©2019 Fannie Mae. Trademarks of Fannie Mae. 6

2018 Annual Housing Activities Report and Annual Mortgage Report

Easing the burdens of a mortgage is only part of the answer. No 

loan is sustainable if a home is too costly to buy or rent. Fannie 

Mae has begun to examine ways in which the conventional 

mortgage market can encourage the creation of housing that is 

cheaper to buy and maintain.

One example is our MH Advantage® loan product, which seeks 

to help lenders create a broader, more liquid, and ultimately 

more accessible market for financing manufactured homes. 

Manufactured housing represents about 10 percent of U.S. 

housing stock and is a critical source of shelter for lower 

income households, especially seniors and veterans. MH 

Advantage was developed as part of our three-year Duty to 

Serve plan to support new ways to preserve and increase 

availability of affordable housing options in underserved 

markets. MH Advantage seeks to bring Fannie Mae expertise 

and liquidity to the market for manufactured housing, which 

is dramatically less expensive to build and to deliver than 

traditional single-family housing. MH Advantage, as with all 

our test-and-learn initiatives, started out small. Nevertheless, 

with continuous improvement, Fannie Mae hopes to enable the 

growth of manufactured housing as a quality, attractive, and 

accessible form of home ownership for moderate- and lowerincome households. 

To support the better housing ecosystem we know is possible, 

we first need to imagine it. In 2018, Fannie Mae launched its 

Sustainable Communities Innovation Challenge to recognize 

and support private-sector efforts at the local level to create 

housing that delivers not only affordability, but also access to 

viable employment opportunities, health care, and educational 

options. Another way we are helping customers and partners 

Enabling Affordability 

through Innovation 

At its most basic level, Fannie Mae’s housing affordability 

mission is driven by its distinct and essential role in linking 

global capital to the U.S. housing market, and ensuring the 

mortgage system operates in as liquid, efficient way as possible. 

Setting credit standards that responsibly increase access to the 

conventional mortgage market is just one way we do this. 

Fannie Mae has ushered in industry-changing innovations for 

customers, investors, and other partners. These innovations 

will make housing finance better, safer, and more efficient for 

future generations. We want to do more than just marginally 

improve the mortgage world of today; we want to build nextgeneration capabilities for the mortgage world of tomorrow.

We continually innovate to identify new ways to support 

liquidity in the market. Our issuance of Multifamily Green 

Bonds has supported this goal by attracting new socially 

responsible investors to Fannie Mae securities. Investors seek 

these bonds because of their dual strengths: strong credit 

quality and positive social and environmental outcomes, such 

as lower housing costs for renters and reduced consumption of 

energy and water.

 Another way we are spurring innovation is by delivering 

powerful new digital tools to our lender customers. These tools 

enable significant reductions in the cost and time of originating 

a mortgage. We foresee a mortgage that can be processed in 

days, with ever greater transparency and accuracy. Together 

with our customers and financial technology partners, we are 

helping build a fundamentally better, faster, cheaper, and safer 

mortgage process, one that we believe will be far better able to 

meet the needs of homebuyers at all income levels.

For instance, more than 10 percent of the single-family 

mortgages Fannie Mae financed for low-income homebuyers 

had some form of electronic data validation, such as income or 

employment verification. These validation tools are part of our 

Day 1 Certainty® offerings that help lenders reduce the costs 

and time of the mortgage process.

More than 50 percent of all singlefamily owner-occupied home 

purchase loans financed by Fannie 

Mae in 2018 were to first-time 

homebuyers.
©2019 Fannie Mae. Trademarks of Fannie Mae. 7

2018 Annual Housing Activities Report and Annual Mortgage Report

reimagine housing availability is our work to help communities 

recover after natural disasters. Rebuilding housing after 

hurricanes, fires, and other tragedies should result in housing 

that is more resilient, as well as less costly and time consuming 

to create. Fannie Mae seeks to be a key partner in helping 

communities rebuild wisely in areas that seem increasingly 

prone to weather-related damage.

In all these efforts, partnership and collaboration with a broad 

cross-section of housing stakeholders has been essential. Last 

year Fannie Mae helped convene forums in San Francisco, Los 

Fannie Mae financed more than 

$65 billion in lending to support 

approximately 770,000 units of 

rental housing in 2018.

Angeles, Boston, and Dallas, inviting diverse housing industry 

participants in both the public and private sectors, to explore 

innovative solutions to creating more housing. These solutions 

included low-cost building techniques; better approaches to 

permitting, zoning, and transportation policy; and ways that 

financial technology can enable an all-digital and far more 

accessible and affordable mortgage process.

Fannie Mae’s position in the housing finance system provides 

us with unique opportunities to make a difference for our 

customers, who are seeking to grow and serve a changing 

America. Our work will also make a difference for global 

investors, who will benefit from greater liquidity, more 

transparency, better data, and a more sustainable market 

when they invest in American housing. Working with our 

customers and others, we look forward to powering a housing 

finance system that is safer, more accessible, more adaptable, 

and more responsive to the needs of future generations of 

American homeowners and renters.

©2019 Fannie Mae. Trademarks of Fannie Mae. 7

2018 Annual Housing Activities Report and Annual Mortgage Report
©2019 Fannie Mae. Trademarks of Fannie Mae. 8

2018 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 

U.S. House of Representatives and the U.S. 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 2008,3 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). 

That responsibility has included setting housing goals. The 

single-family goals for 2018-2020 include:

• Low-Income Families Home Purchase Goal Benchmark: 

At least 24 percent of our acquisitions of single-family 

owner-occupied purchase money mortgage loans must be 

affordable to low-income families (defined as families with 

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 singlefamily 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 owneroccupied purchase money mortgage loans for families in lowincome 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 annual 

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 2018, FHFA set the overall lowincome 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.

For 2018, we believe that we met all 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 meet our single-family housing goals 

if we meet either the benchmarks or the market share. For 

any housing goals where the single-family performance falls 

below the benchmark level, FHFA compares the performance 

with that of the market share after the release of data reported 

under the Home Mortgage Disclosure Act (HMDA),4

 which 

typically occurs in the fall after the performance year, and 

determines whether Fannie Mae met this goal based on the 

HMDA market data.

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 12 U.S.C. § 2801 et seq.
©2019 Fannie Mae. Trademarks of Fannie Mae. 9

2018 Annual Housing Activities Report and Annual Mortgage Report

FHFA also established multifamily goal benchmarks for 2018 

through 2020:

• Low-Income Families Goal Benchmark: At least 315,000 

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: 

At least 10,000 units per year must be affordable to lowincome families in small multifamily properties (5-50 units).

There is no market-based alternative measurement for the 

multifamily goals. For 2018, we believe that we met all three 

multifamily goals.

If our efforts to meet our housing 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 2018, FHFA assessed Fannie Mae’s 2017 housing 

goals performance using HMDA data for primary mortgage 

market originations and determined that we achieved all of the 

single-family and all of the multifamily housing goals.

The following table sets forth Fannie Mae's housing goals 

performance against our 2018 single-family and multifamily 

housing goals benchmarks. We expect final performance 

results for 2018 will be calculated and published by FHFA by the 

fourth quarter of 2019.5

Housing Goals 2018 Benchmark 2018 Result

Single-Family

Low-Income Families Home Purchase 24% 28.21%

Very Low-Income Families Home Purchase 6% 6.70%

Low-Income Areas Home Purchase 18% 25.07%

Low-Income Areas and High-Minority Home Purchase Subgoal 14% 20.05%

Low-Income Families Refinance 21% 31.16%

Multifamily (in units)

Low-Income Families 315,000 422,478

Very Low-Income Families Subgoal 60,000 80,990

Small (5-50 units) Affordable Multifamily Properties Subgoal 10,000 11,890

5 Our 2018 results have not been validated by FHFA. After validation they may differ from the results reported. 
©2019 Fannie Mae. Trademarks of Fannie Mae. 10

2018 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).6 Each 

statutory requirement is set forth below, followed by Fannie 

Mae’s response for 2018.

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 2018, 50.57 percent of home purchase mortgages on singlefamily owner-occupied properties acquired by Fannie Mae 

financed mortgage loans to first-time homebuyers.7

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 very low- to 

moderate-income borrowers. We describe these products and 

programs below:

HomeReady® 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. Below are 

some examples of homebuyers who benefited from HomeReady 

in 2018:

• A single father with two children in South Carolina wanted 

to purchase a home for his family, but thought that a 

bankruptcy filing in his past would disqualify him. With an 

income below $70,000 and minimal debt, he took additional 

work to save for the down payment. He was able to qualify 

for a HomeReady mortgage on a home, with a 97 percent 

loan-to-value (LTV) ratio.

• A 24-year-old California woman who had recently lost her 

father, lived in a family home owned by another family 

member. When the family member died, and the home was 

sold, she struggled to find an apartment that would allow her 

to keep her large dog. After completing the Framework online 

homeownership education course, she was able to attain a 

HomeReady loan to purchase a condominium on her annual 

salary, with a 93 percent LTV ratio.

• A married nurse with three children, residing in Washington 

state, had gone through a difficult divorce in the past causing 

her to file for bankruptcy. She worked to repair her credit, 

but even with an income of over $50,000, believed the 

bankruptcy would prevent her from ever owning a home. 

With HomeReady and the help of a local nonprofit, she was 

able to purchase a home for her family at 81 percent LTV 

ratio.

• A single self-employed man was running a business out of his 

bedroom in Oregon. With an annual income of over $50,000 

he wasn’t sure he’d be able to afford a bigger home. After 

meeting with a lender, he learned that if he were to keep his 

current condo and rent it out, he could use the extra income 

to qualify for a HomeReady loan. He ended up purchasing a 

new home at 97 percent LTV ratio.

6 Charter Act, § 309(n)(2)(A-L).

7 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 2018 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.
©2019 Fannie Mae. Trademarks of Fannie Mae. 11

2018 Annual Housing Activities Report and Annual Mortgage Report

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 in 2018 include the following:

• A single woman in Nevada who had recently fostered, and 

then adopted, her two nieces while their mother was in 

recovery. After recovery, her sister had a third child. While the 

borrower had good credit, little debt, and a monthly income 

of more than $4,000, the financial impact of caring for her 

sister and three children made it difficult to save for a new 

home. Working with a Nevada non-profit, she was able to 

qualify for an HFA Preferred loan to purchase a home for her 

family, with a 97 percent LTV ratio.

• A father with three children who was looking for a larger 

home in Minnesota. He had a monthly income of more than 

$6,000, but his significant student loan debt was a barrier 

to qualifying for a mortgage. However, because his student 

loans were on an income-based repayment plan, he was able 

to take advantage of the student loan flexibilities of an HFA 

Preferred loan and qualify to purchase a home, 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 in 2018 include the following:

• A single woman in Utah who had cared for her parents for 

many years. When her parents died she was looking to 

purchase a home. She had very good credit, but her monthly 

income earned as a school counselor hadn’t allowed her to 

save much. Through the assistance of a non-profit program, 

she was able to purchase a beautiful home with 97 percent 

LTV ratio and no mortgage insurance, with Fannie Mae’s HFA 

Preferred Risk Sharing loan.

• A couple in Idaho who had been renting a home for several 

years when their landlord decided to sell their house. Their 

monthly income was less than $5,000 and they were unsure 

if they could find a home in their price range. With an HFA 

Preferred Risk Sharing mortgage, they were able to purchase 

the house they had been renting with a 97 percent LTV 

ratio. They have since modified the home to better care for 

their disabled child and a relative, who moved in after the 

purchase.

• A young divorced mother who was ready to purchase a 

home in Kentucky for herself and her 11-year-old child after 

spending years repairing her credit. She had everything she 

needed, except the down payment. She learned that down 

payment assistance through her state HFA could be coupled 

with an HFA Preferred Risk Sharing mortgage to cover her 

down payment and keep her debt-to-income (DTI) low 

without mortgage insurance. With an income of over $50,000, 

the borrower was able to purchase a home, with a 97 percent 

LTV ratio.

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 community 

organizations, to be used in conjunction 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.8

 Borrowers who benefited from this program in 2018 

include the following:

• A Boston police officer who had wanted to buy a home for 

herself and her 19-year-old for years. She won a lottery 

to purchase a new home in a mixed-income rental and 

homeownership development. With an income of less than 

$50,000 she was able to combine an HFA Preferred mortgage 

with down payment assistance from a local non-profit and 

closing cost assistance from the City of Boston, to purchase a 

home with a 97 percent LTV ratio.

 8 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. 
©2019 Fannie Mae. Trademarks of Fannie Mae. 12

2018 Annual Housing Activities Report and Annual Mortgage Report

• A married couple with two children who were looking to 

purchase a home in Washington state. The borrower, who 

earned a salary of less than $60,000, used a HomeReady 

mortgage and three sources of down payment assistance 

to purchase a home with his husband, with a 94.7 percent 

LTV ratio.

The percentage of single-family home purchase mortgages 

acquired by Fannie Mae on owner-occupied properties made 

to first-time homebuyers in 2018 under special products and 

programs (or revisions to conventional products) included the 

following:

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.

Services to very low-, low-, and moderate-income families is 

an important part of Fannie Mae’s 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.

Fannie Mae has a comprehensive fair lending risk management 

program to support its commitment to fair lending and 

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 2018, Fannie Mae continued to implement enhancements to 

its single-family mortgage underwriting and business practices. 

Several changes were specifically designed to: (1) achieve its 

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, 

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 

for 2018:

Manufactured Housing (MH)

Fannie Mae believes today’s modern, high-quality manufactured 

homes can help ease the nation’s affordable housing shortage 

and address borrowers’ evolving needs. We haves take the 

following steps to expand liquidity to this market:

• MH Advantage: In June 2018, Fannie Mae announced 

MH Advantage, a new homeownership option that pairs 

affordable financing with specially designated manufactured 

housing having characteristics typical of site-built homes. MH 

Advantage homes are designed to meet specific construction, 

architectural design, and energy efficiency standards that are 

more consistent with site-built homes. Loans secured by MH 

Advantage properties are afforded a number of flexibilities 

over standard manufactured housing, including higher LTV 

ratios, standard mortgage insurance, and reduced loan-level 

price adjustments. 

• On-frame modular and modular construction: Allowed 

on-frame modular homes to be considered eligible property 

types if they meet the eligibility requirements of site-built 

homes. Multi-unit buildings, such as attached condos, may 

be built using modular construction if they comply with local 

building codes.

Products and Initiatives Percentage of Mortgages Made 

to First-Time Homebuyers

97 LTV Expansion9 100.00%

HomeReady 76.64%

Non-HFA Community Seconds 93.34%

HFA Preferred 90.52%

HFA Preferred Risk Sharing 90.07%

9 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.
©2019 Fannie Mae. Trademarks of Fannie Mae. 13

2018 Annual Housing Activities Report and Annual Mortgage Report

Down Payment and Closing Cost Assistance

The upfront cost of purchasing a home, including the down 

payment and closing costs, is one of the biggest barriers to 

homeownership for low- to moderate-income borrowers. 

Fannie Mae took the following steps to address this challenge:

• Lender contributions to closing cost assistance: Provided 

additional flexibility for lenders to provide closing cost 

assistance to borrowers, not to exceed the amount of 

borrower-paid closing costs and prepaid fee, when certain 

requirements are met. A lender-sourced contribution may 

not be:

• used to fund any portion of the down payment;

• subject to repayment requirements, or require financial 

obligation apart from the subject mortgage; or

• passed to the lender from a third party.

• Native American tribes as Community Seconds providers: 

Allowed Native American tribes and their sovereign 

instrumentalities to provide grants or Community Seconds 

loans to borrowers.

Credit Policy Enhancements

Fannie Mae made the following Single-Family Selling Guide

policy updates in 2018 that impact low- and moderate-income 

families:

• Condo policy update: Updated condo policies to increase 

simplicity and flexibility, making it easier for lenders to 

originate condo loans. Among other things, the changes 

reduce review requirements for certain transactions, increase 

the amount of allowable commercial space, and expand 

review flexibilities.

• Rural high-needs appraisal waivers: Announced a new 

appraisal waiver option in exchange for a mandatory home 

property inspection, for eligible home purchases in certain 

rural high-needs areas, seeking to help low- to moderateincome borrowers avoid unanticipated, potentially high-cost, 

post-purchase repairs.

• Expanded the existing policy for borrowers who want to use 

certain employment-related assets to generate an income 

stream for qualifying purposes. This change increases the 

maximum LTV ratio, combined LTV (CLTV) ratio, and high CLTV 

(HCLTV) ratio from 70 percent to 80 percent for loans where 

the asset owner is at least 62 years old at the time of closing. 

This solution supports the needs of seniors who may have 

significant financial assets, but potentially insufficient earned 

income as their participation in the workforce decreases.

• High LTV Refi: Provided a new high LTV refinance option 

for borrowers with existing Fannie Mae mortgages who are 

making their mortgage payments on time, but whose LTV 

ratios for a new mortgage exceed the maximum for standard 

limited cash-out refinance transactions in the Selling Guide. 

This high LTV refinance option replaced the Home Affordable 

Refinance Program in 2018.

Desktop Underwriter

For more than 23 years, Desktop Underwriter® (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. DU updates in 

2018 included: 

• DU Version 10.2

• DU Version 10.3

• Enhancements to the DU validation service, a component of 

Day 1 Certainty®

DU Version 10.2

In March 2018, Fannie Mae implemented DU Version 10.2, 

which included an adjustment to the DU credit risk assessment 

that built on the underwriting simplification introduced with 

DU Version 10.1. The DU risk assessment was fine-tuned to limit 

risk layering. The update supported Fannie Mae’s commitment 

to prudent risk management and helped lenders to better 

manage default risk, while continuing to provide sustainable 

homeownership options to borrowers. DU Version 10.2 also 

included the implementation of MH Advantage.

DU Version 10.2 was updated in June of 2018 to provide 

lenders the ability to instruct DU to disregard in the eligibility 

assessment bankruptcy information that is incorrect or due to 
©2019 Fannie Mae. Trademarks of Fannie Mae. 14

2018 Annual Housing Activities Report and Annual Mortgage Report

extenuating circumstances, and disregard excessive mortgage 

delinquency information that is incorrect. The June update 

also included the implementation of the HomeStyle® Energy 

mortgage loan.

DU Version 10.3

In December of 2018 DU Version 10.3 was implemented, 

adjusting the DU credit risk assessment to account for 2018 

market conditions (rising interest rates, waning refinances, 

and higher LTV ratio lending). DU 10.3 continues to analyze 

each loan case file using variables shown to be predictive 

of mortgage delinquency and addresses market expansion 

into loans with multiple high-risk factors with more effective 

management of risk layering. 

DU Validation Service 

Fannie Mae continues to optimize and enhance the DU 

Validation Service, a component of Day 1 Certainty. In 2018 

options for employment validation were enhanced by the 

added ability to manually validate a borrower’s employment. 

With manual employment validation, Fannie Mae offers 

the same Day 1 Certainty benefit as digital validation. This 

enhancement to the DU validation service gives our customers 

more options to provide a better borrower experience and 

increase certainty.

Language Resources for Lenders/Servicers

A very significant percentage of the U.S. population has limited 

proficiency with the English language. These borrowers face 

serious barriers to homeownership. Fannie Mae teamed up 

with Freddie Mac and FHFA to launch Mortgage Translations – a 

centralized clearinghouse of online resources to assist lenders, 

servicers, housing counselors, and real estate professionals 

serving Limited English Proficiency (LEP) borrowers. Resources 

to support lending professionals who serve these consumers 

include translated mortgage documents, educational 

materials, and a new online Spanish-English glossary. 

Resources in four other languages commonly spoken by LEP 

households (Chinese, Vietnamese, Korean, and Tagalog) will be 

added in coming years.

In addition, Fannie Mae provides our own similar Spanish 

resources to help sellers and servicers better serve these 

customers, which include:

• Spanish Language Resources for Servicers, which include 

Spanish translations of routine servicing documents as well 

as borrower notices related to delinquencies, modifications, 

and workout options. 

• Spanish Language Resources for Lenders, which include 

Spanish translations of documents used in the loan 

origination process.

Uniform Residential Loan Application

At the direction of FHFA, in 2018 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. The Enterprises 

collaborated with industry stakeholders including lenders, 

government agencies (e.g., Federal Housing Administration, 

Department of Veterans Affairs, United States Department of 

Agriculture Office of Rural Development, and the Consumer 

Finance Protection Bureau), technology solution providers, 

mortgage insurers, trade associations, housing advocates, 

and consumer groups. The redesigned URLA, which includes a 

Spanish Translation version:

• 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 Enterprises require use of the new form for loan 

applications on or after Feb. 1, 2020, although lenders may 

begin using the redesigned form on July 1, 2019. The old form 

will no longer be accepted as of Feb. 1, 2021.
©2019 Fannie Mae. Trademarks of Fannie Mae. 15

2018 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 educational 

component is supplied 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.

HomeReady offers pricing advantages, 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 U.S. Department 

of Housing and Urban Development (HUD)-approved oneon-one housing counseling to help homebuyers prepare for 

homeownership. Certain exceptions are allowed.

HomeReady features include:

• Up to a 97 percent LTV ratio; and a 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 to qualify.

• Manufactured housing titled as real estate is also an eligible 

property type.

Also in 2018, Fannie Mae supported the use of HomeReady by:

• Conducting monthly education and outreach with 500+ 

lenders and 2500+ loan officers (including 300+ participants 

from 100+ small financial institutions). 

• Increasing the HomeReady share of Fannie Mae’s book of 

business from 6 percent to 9 percent in 2018. Survey results 

for the product showed 98 percent satisfaction as good/

excellent and a 95 percent product adoption rate 60 days 

post training.

• Providing on-demand eLearning training which was accessed 

by 3,871 unique viewers. 

• Creating additional lender resources, including fact sheets 

and videos.

• Creating lender testimonials highlighting success with 

HomeReady.

• Investing in HomeReady product-specific communications 

targeting lenders and realtors to increase awareness and 

consideration.

• Educating potential homeowners on low down payment 

financing options, helping to dispel the myth that you need 

a 10-20 percent down payment to purchase a home. Fannie 

Mae increased general awareness of HomeReady through 

outreach efforts to lenders, real estate professionals and 

other affordable housing stakeholders at 68 events in 2018.

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 2018, Fannie Mae expanded our marketing efforts to 

further support the HFAs by executing a strategy to increase 

conventional lending across all agency programs. Part of 

the strategy included the development of a comprehensive 

communications plan to engage with all HFAs and their lender 

partners on a regular basis to help drive understanding and 

education around the value of the HFA Preferred mortgage. 

One tactic of the plan included the development of custom 

emails that the HFAs distributed to their lender and realtor 

networks. These efforts were coupled by additional in-person 

lender trainings and online webinars to further promote the 

borrower benefits when obtaining an HFA Preferred mortgage. 

This broad-based outreach and education campaign helped 

drive an increase of 20 percent in HFA Preferred deliveries from 

2017 to 2018.
©2019 Fannie Mae. Trademarks of Fannie Mae. 16

2018 Annual Housing Activities Report and Annual Mortgage Report

Homebuyer Education and Counseling

Fannie Mae believes that high-quality homeownership 

education and counseling provides homebuyers and borrowers 

with the information and resources they need to navigate the 

home buying process and to make informed decisions that 

support sustainable homeownership.

In 2018, Fannie Mae:

• Supported the Housing Partnership Network in the 

development and introduction of Launchpad®, a new 

technology platform designed to enable housing counselors 

to better serve the needs of prospective and existing 

homeowners and renters across the U.S. The Launchpad 

client management system is built on Salesforce technology 

and will facilitate better service to consumers and greater 

collaboration between housing counselors and lenders, 

leveraging automated underwriting tools like Fannie Mae’s 

DU. 

• Supported the National American Indian Housing Council 

on the creation of an updated version of Pathways Home: 

A Native Guide to Homeownership, which included a 

participant and facilitator’s curriculum.

• Partnered with rural Community Development Financial 

Institutions (CDFI’s) to increase access to housing counseling 

in colonias and Middle Appalachia and improve the capacity 

of direct housing counseling service providers.

• Continued to provide a $500 incentive to lenders for 

HomeReady loans where borrowers received one-on-one 

housing counseling early in the home buying process.

• Expanded our collaboration with Framework® to connect 

HomeReady borrowers and others to comprehensive, 

online homeownership education (in English and Spanish), 

and post-purchase support. More than 182,000 potential 

homebuyers have completed the Framework course. 

• Provided extensive outreach and training to lenders and 

HUD-approved counseling organizations on HomeReady and 

the incentives for one-on-one housing counseling.

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 borrowers10 shows 

that these loans generally do not perform as well as loans 

serving borrowers with incomes above the median level. 

The chart on the following page shows 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 with loans made to borrowers with 

incomes above the median level. For example, loans made in 

2017 to low- and moderate-income families were 18 percent 

more likely to become 90-days delinquent and 258 percent 

more likely to default than loans made to families with income 

above the median level, although default rates were very low 

for both groups. 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 2017; performance is observed through 

December 2018.

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.

10 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.
©2019 Fannie Mae. Trademarks of Fannie Mae. 17

2018 Annual Housing Activities Report and Annual Mortgage Report

Acquisition 

Year

Income 

Group

Average Rate 

of 90-Day 

Delinquency

Percent 

Difference

Average Rate 

of Default

Percent 

Difference

2004

Above Median Income 0.39% 2.54%

Low-Mod Income 1.01% 159.48% 5.44% 113.88%

2005

Above Median Income 0.57% 6.48%

Low-Mod Income 1.27% 123.35% 9.33% 44.10%

2006

Above Median Income 1.01% 11.65%

Low-Mod Income 2.19% 118.12% 14.72% 26.33%

2007

Above Median Income 2.88% 13.77%

Low-Mod Income 4.31% 49.49% 18.50% 34.37%

2008

Above Median Income 1.96% 5.12%

Low-Mod Income 2.87% 46.32% 8.47% 65.60%

2009

Above Median Income 0.17% 0.59%

Low-Mod Income 0.35% 107.78% 1.46% 148.27%

2010

Above Median Income 0.13% 0.50%

Low-Mod Income 0.30% 125.67% 1.27% 154.55%

2011

Above Median Income 0.12% 0.31%

Low-Mod Income 0.28% 136.44% 0.82% 163.96%

2012

Above Median Income 0.12% 0.28%

Low-Mod Income 0.27% 132.23% 0.74% 165.64%

2013

Above Median Income 0.11% 0.23%

Low-Mod Income 0.29% 168.51% 0.71% 206.64%

2014

Above Median Income 0.14% 0.16%

Low-Mod Income 0.33% 137.83% 0.50% 207.95%

2015

Above Median Income 0.11% 0.06%

Low-Mod Income 0.26% 141.24% 0.19% 222.10%

2016

Above Median Income 0.14% 0.02%

Low-Mod Income 0.27% 93.59% 0.08% 303.12%

2017

Above Median Income 0.42% 0.01%

Low-Mod Income 0.50% 18.28% 0.02% 258.35%

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 Year11

11 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.
©2019 Fannie Mae. Trademarks of Fannie Mae. 18

2018 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 2019 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 national multifamily sector is expected to remain 

fairly stable in 2019. 

Rent growth continued to exceed the overall inflation rate, with 

rent growth estimated to have ended the year at about 2.75 

percent, with inflation at 2.4 percent on average in 2018. Rents 

are expected to increase approximately two percent in 2019.

Continued demand for multifamily rental housing was 

reflected in the net increase in the number of occupied rental 

units during 2018 (known in industry terms as positive net 

absorption). Net absorption likely totaled at least 180,000 units 

in 2018, compared with an estimated 187,000 units absorbed 

in 2017, according to Reis, Inc. Net absorption is expected to 

remain positive in 2019, although at a much lower level than 

last year. 

Estimated National Rent Level and Vacancy Rate

Source: Fannie Mae Economics and Multifamily Market Research

$925

$975

$1,025

$1,075

$1,125

$1,175

$1,225

$1,275 Rent Level Vacancy Rate

$1,325

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2005Q1 2006Q2 2007Q3 2008Q4 2010Q1 2011Q2 2012Q3 2013Q4 2015Q1 2016Q2 2017Q3 2018Q4
©2019 Fannie Mae. Trademarks of Fannie Mae. 19

2018 Annual Housing Activities Report and Annual Mortgage Report

National Apartment Sales Volume and Cap Rates

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

Sales of multifamily properties valued at $2.5 million or greater 

totaled an estimated $173 billion last year, which is up 12 

percent compared with 2017’s total of $154 billion, according 

to recent data from Real Capital Analytics. As a result, total 

multifamily sales activity peaked in 2018. As a comparison, in 

2009 the total volume for multifamily property sales was only 

$18 billion. 

Although multifamily capitalization rate levels vary depending 

upon whether it is for a mid/high-rise property or a gardenstyle one, they remained low during 2018. The estimated fourth 

quarter 2018 national annualized average multifamily cap rate 

dipped slightly to 5.4 percent compared with 5.5 percent in 

the third quarter and 5.6 percent in both the first and second 

quarters of 2018, as seen in the chart above. 

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 promote 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 mortgagebacked 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 

instantly transfers interest rate risk to private capital at rate 

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

2018 Standardization and Securitization Highlights:

• Fannie Mae issued $64 billion in multifamily MBS in 2018, 

which accounted for 98 percent of its multifamily production. 

• In an effort to improve the liquidity and increase demand 

for multifamily MBS, in 2018 Fannie Mae issued $7.5 billion 

of multifamily structured securities through 10 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 

$0

$10

Billions

$20

$30

$40

$50

$60

Sales Cap Rates

5.3%

5.5%

5.7%

5.9%

6.1%

6.3%

6.7%

6.9%

7.1%

6.5%

7.3%

2005Q1

2005Q3

2006Q1

2006Q3

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3

2010Q1

2010Q3

2011Q1

2011Q3

2012Q1

2012Q3

2013Q1

2013Q3

2014Q1

2014Q3

2015Q1

2015Q3

2016Q1

2016Q3

2017Q1

2017Q3

2018Q1

2018Q3
©2019 Fannie Mae. Trademarks of Fannie Mae. 20

2018 Annual Housing Activities Report and Annual Mortgage Report

invest in multifamily MBS. Of the 2018 GeMS issuances, $2.6 

billion were Green GeMS which were backed by multifamily 

Green MBS. In 2019, Fannie Mae will continue to market its 

multifamily structured product offerings through the GeMS 

program.

• In 2018, Multifamily expanded the new DUS DiscloseTM

platform to include disclosure on all securities that 

Multifamily issues, including our REMICs and Megas. 

Providing one location for investors to access data and 

documents on our securities and enabling them to link 

REMICs to the underlying MBS increases transparency. In 

addition, we expanded the data available on our Green 

products enabling us to broaden the investor base in our 

securities. All of these activities support the liquidity of our 

lending platform. 

In December of 2016, the risk retention provisions of DoddFrank went into effect, impacting issuers of commercial 

mortgage-backed securities by requiring a sponsor to hold 

credit risk for the life of the securitization. Although Fannie 

Mae is exempt from Dodd-Frank Risk Retention while in 

conservatorship, our DUS risk-sharing program has required 

similar risk sharing of our lenders for more than 25 years. Under 

the DUS program, the originating lender shares credit risk with 

Fannie Mae through the life of the loan. This early adoption of 

risk sharing has helped ensure strong multifamily credit and 

loan performance, encourages the participation of private 

capital in our MBS and helps to broaden the investor base for 

Fannie Mae multifamily securities.

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 CranstonGonzalez National Affordable Housing Act.12

Activities undertaken by Fannie Mae in 2018 with nonprofit 

and for-profit organizations, state and local governments, 

and HFAs included: 

• Fannie Mae purchased 63,527 single-family loans from HFAs 

in 2018, with an unpaid principal balance of $11.69 billion. 

• Fannie Mae helped provide financing for over 13,000 LowIncome Housing Tax Credit (LIHTC) units of housing by 

providing $1.342 billion 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 2018, 51 percent 

of our employees volunteered and provided more than 

33,217 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 $63,000 through employee “funraisers” for eight Help the Homeless® community partners. 

• In 2018, in partnership with the Disaster Response and 

Rebuild team, we deployed 476 employee volunteers (7 

percent of FTEs) to rebuild homes in Houston, Puerto Rico, 

the Florida Keys, and Coastal Bend, TX. We worked with 25 

nonprofit partners to provide 9,229 volunteer hours repairing 

and rebuilding 40 households in these communities.

 12 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 moderate-income 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.
©2019 Fannie Mae. Trademarks of Fannie Mae. 21

2018 Annual Housing Activities Report and Annual Mortgage Report

• Engaged and partnered with HUD intermediaries and nonprofit housing counseling agencies on homeownership 

counseling initiatives to help increase homeownership 

in underserved markets, this includes services to help 

homebuyers become “mortgage ready” and obtain 

information on affordable lending options, including access 

to individual development accounts and down payment 

assistance programs.

• Enhanced partnerships with three universities serving 

high-needs rural regions to address housing supply issues 

and consumer financial barriers to housing stability and 

homeownership. This included the launch of a service 

learning program that aimed to help increase financial 

capability of consumers through student financial coaches.

• Facilitated the sale of 1,747 single-family real estate owned 

properties to or through nonprofits and communitybased buyers involved in supporting housing strategies 

that addressed local stabilization and affordable housing 

needs, including 1,372 properties in the 28 markets of the 

Neighborhood Stabilization Initiative. 

• The Future Housing Leaders program, which was launched 

by Fannie Mae in conjunction with the National Urban 

League to help employers from across the housing sector 

build diverse pipelines of entry-level talent, made great 

strides during its first year in 2018. The program actively 

recruited on 13 college and university campuses and had 

seven student ambassadors who worked to promote the 

program on their respective campuses. Over 40 students 

were placed in paid summer internships with 13 Employer 

Partners, and through the internships one student received 

and accepted a full-time job offer. 

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 low- and 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 owneroccupied properties that relate to each of the housing goals are 

set forth on Table 1A of the Annual Mortgage Report (AMR).13

The dollar volume and number of mortgages on rental 

properties that relate to each of the housing goals are set forth 

on AMR Table 1B (Multifamily) and Table 1D (single-family 

rental units). In 2018, Fannie Mae mortgage purchases financed 

10,044 rental units affordable to families earning 80 percent or 

less of AMI living in owner-occupied 2-4 unit properties.14

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

14 For 443 units that we financed, affordability data was not provided so these units are not included in our calculation. 
©2019 Fannie Mae. Trademarks of Fannie Mae. 22

2018 Annual Housing Activities Report and Annual Mortgage Report

CHARTER ACT REQUIREMENT: Compare the level of 

securitization versus portfolio activity.

During 2018, Fannie Mae securitized $534.8 billion in mortgage 

loans. We had total portfolio acquisitions of $277.1 billion, 

which included $16.2 billion of delinquent loans purchased 

from our MBS trusts. In 2018, Fannie Mae’s portfolio decreased 

by $51.6 billion.

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 

1,802 single-family and 59 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 2018 from single-family 

lenders identified as minority- or women-owned lenders, 

women-owned lenders,16 and single-family and multifamily 

community-oriented lenders.17

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.18

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 2018, Fannie Mae’s purchases of mortgages served 2,599,654 

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 2018, Fannie Mae purchased 9,012 single-family mortgages 

and 393 multifamily mortgages with an aggregate unpaid 

principal balance of approximately $1.35 billion and $6 billion, 

respectively, that were originated in conjunction with public 

subsidy programs.15

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.

Seller/Servicer Type Volume of Mortgages

Minority- or women-owned $5.29 billion

Women-owned $4.32 billion

Community-oriented lenders $82.6 billion

15 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.

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

17 For these purposes, a “community-oriented lender” is defined as a financial institution with total assets of less than $1.252 billion as of December 31, 2017. 

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 2018.

 18 These agreements do not preclude members from doing business through other secondary market channels.
©2019 Fannie Mae. Trademarks of Fannie Mae. 23

2018 Annual Housing Activities Report and Annual Mortgage Report

The Annual Mortgage Report (AMR)
This page is intentionally left blank
©2019 Fannie Mae. Trademarks of Fannie Mae. 25

2018 Annual Housing Activities Report and Annual Mortgage Report

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

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

Eligible To Purchase Purchase Purchase Purchase Eligible To Refinance

Qualify For All Money Money Money Goal Money Qualify As Mortgages1

Home Purchase Mortgages Mortgages Mortgages Subgoal Low-Income

Money Goals Mortgages Refinance1

Purchase of Single-Family Mortgages

 Owner-Occupied 1-Unit Properties/Mortgages:

 UPB ($ Millions) $254,634 $47,137 $8,194 $50,538 $41,843 $137,132 $29,145 $412,035 

 Number of Mortgages 1,037,619 292,686 69,494 258,412 206,120 621,606 193,476 1,750,272

 Owner-Occupied 2-4 Unit Properties/Mortgages:

 UPB ($ Millions) $2,062 $323 $53 $1,001 $987 $2,564 $559 $4,637 

 Number of Mortgages 6,479 1,873 458 3,314 3,244 8,210 2,754 14,730

Total Single-Family Owner-Occupied Mortgages in 1-4 Unit 

Properties:

 UPB ($ Millions) $256,696 $47,460 $8,247 $51,539 $42,830 $139,696 $29,705 $416,672 

 Number of Mortgages 1,044,098 294,559 69,952 261,726 209,364 629,816 196,230 1,765,002

Goals Performance

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

 Goals Performance Percentage 28.21% 6.70% 25.07% 31.16%

 Fannie Mae's Single-Family Subgoal 14%

 Subgoal Performance Percentage 20.05%

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 

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 2018

Mortgages may count toward more than one goal. On certain tables, sum of entries may not equal totals due to rounding.
©2019 Fannie Mae. Trademarks of Fannie Mae. 26

2018 Annual Housing Activities Report and Annual Mortgage Report

All Mortgage 

Purchases

Purchases of Multifamily Mortgages

Multifamily 5-50 Unit Properties: 

UPB ($ Million) $741 $185 $1,871 

Number of Mortgages 454 261 581

Number of Properties 458 264 588

Number of Units 11,515 3,598 17,894

Multifamily > 50 Unit Properties:

UPB ($ Million) $28,990 $4,309 $58,967 

Number of Mortgages 2,443 1,593 2,794

Number of Properties 2,454 1,603 2,805

Number of Units 404,302 73,138 610,336

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 10,566 10,566 N/A

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

Units Where Rent Estimation is Possible 10,566 10,566 N/A

Large (>50 unit) properties 9,937 6,287 9,937 3,935 N/A

Small (5-50 unit) properties 629 375 629 319 N/A

Not Subject to Cap 10,566 6,661 10,566 4,254 N/A

Subject to Cap 0 0 0 0 N/A

5% Cap 31,411 31,411 N/A

Adjustments to Number of Units for:

Missing Data 6,661 4,254 N/A

Total Multifamily:

UPB ($ Million) $29,731 $4,495 $60,837 

Number of Mortgages 2,897 1,854 3,375

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

Number of Properties 2,912 1,867 3,393

Number of Units 415,817 76,736 628,230

Number of Units (Adjusted) 422,478 80,990 628,230

Goals Performance

Fannie Mae's Multifamily Goals (units) 315,000 60,000

Goal Performance (units) 422,478 80,990

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

Goal Performance (units) 11,890

Table 1B

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

Summary Table on Multifamily Housing Goal Performance

For Calendar year 2018

Qualifying Low-Income Purchases Qualifying Very Low-Income 

Purchases

Mortgages, properties, and units may count toward more than one goal. On certain tables, sum of entries may not equal totals, due to rounding.
©2019 Fannie Mae. Trademarks of Fannie Mae. 27

2018 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) $1 $0 $3

 Number of Mortgages 4 3 22

 Owner-Occupied 2-4 Unit Properties/Mortgages:

 UPB ($ Millions) $0 $0 $0

 Number of Mortgages 0 0 1

 Total Loan Modifications of At-Risk Mortgages:

 UPB ($ Millions) $1 $0 $3

 Number of Mortgages 4 3 23

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 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 28

2018 Annual Housing Activities Report and Annual Mortgage Report

 Low-Income Units Very Low-Income Units Total Units Financed

Purchases of Single-Family Mortgages

 Owner-Occupied 2-4 Unit Properties/Mortgages:

 UPB ($ Millions) $1,090 $213 $2,493 

 Number of Mortgages 8,442 2,043 14,689

 Number of Units 10,044 2,354 17,790

 Investor Owned 1-4 Unit Properties/Mortgages:

 UPB ($ Millions) $8,729 $1,372 $28,960 

 Number of Mortgages 65,263 11,935 150,483

 Number of Units 90,448 17,429 188,572

Total Single-Family:

 UPB ($ Millions) $9,818 $1,586 $31,452 

 Number of Mortgages 73,705 13,978 165,172

 Number of Units 100,492 19,783 206,362

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 Fannie Mae's Purchases of Mortgages on Single-Family Rental Properties

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 29

2018 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) $8,247 $8,247 $4,423 $6,986 $8,326 $7,016 $15,342 

 Number of Mortgages 69,952 69,952 37,601 59,855 70,747 60,127 130,874

 Portion of Qualifying or Total Mortgages Acquired 23.75% 100.00% 14.37% 30.50% 6.30% 9.36% 7.41%

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

 $UPB(Millions) $9,987 $0 $4,706 $6,073 $10,096 $6,093 $16,189 

 Number of Mortgages 65,600 0 31,246 40,867 66,493 41,037 107,530

 Portion of Qualifying or Total Mortgages Acquired 22.27% 0.00% 11.94% 20.83% 5.92% 6.39% 6.09%

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

 $UPB(Millions) $29,226 $0 $12,528 $16,646 $29,647 $16,712 $46,360 

 Number of Mortgages 159,007 0 70,266 95,508 162,015 95,994 258,009

 Portion of Qualifying or Total Mortgages Acquired 53.98% 0.00% 26.85% 48.67% 14.44% 14.94% 14.62%

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

 $UPB(Millions) $0 $0 $13,087 $0 $34,466 $18,911 $53,378 

 Number of Mortgages 0 0 61,970 0 157,891 93,463 251,354

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 23.68% 0.00% 14.07% 14.54% 14.24%

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

 $UPB(Millions) $0 $0 $4,550 $0 $32,784 $18,369 $51,153 

 Number of Mortgages 0 0 18,715 0 133,508 81,207 214,715

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 7.15% 0.00% 11.90% 12.64% 12.17%

Income More Than 120% of Median Income

 $UPB(Millions) $0 $0 $12,246 $0 $158,829 $75,356 $234,186 

 Number of Mortgages 0 0 41,928 0 531,577 270,645 802,222

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 16.02% 0.00% 47.36% 42.11% 45.45%

Missing

 $UPB(Millions) $0 $0 $0 $0 $15 $50 $65

 Number of Mortgages 0 0 0 0 70 228 298

 Portion of Qualifying or Total Mortgages Acquired 0.00% 0.00% 0.00% 0.00% 0.01% 0.04% 0.02%

All Income Levels1

 $UPB(Millions) $47,460 $8,247 $51,539 $29,705 $274,163 $142,508 $416,672 

 Number of Mortgages 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

 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 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 30

2018 Annual Housing Activities Report and Annual Mortgage Report

Qualifying LowIncome PurchasesQualifying Very 

Low- Income 

Total Units 

Financed

Affordable At No More Than 30% of Median Income

$UPB(MILLIONS) $1,794 $1,794 $1,794 

Number of Units 25,476 25,476 25,476

6.13% 33.20% 4.06%

Affordable At More Than 30% But No More than 

50% of Median Income

$UPB(MILLIONS) $2,701 $2,701 $2,701 

Number of Units 51,260 51,260 51,260

12.33% 66.80% 8.16%

Affordable At More Than 50% But No More than 

60% of Median Income

$UPB(MILLIONS) $7,034 $7,034 

Number of Units 119,102 119,102

28.64% 18.96%

Affordable At More Than 60% But No More than 

80% of Median Income

$UPB(MILLIONS) $18,202 $18,202 

Number of Units 219,979 219,979

52.90% 35.02%

Affordable At More Than 80% But No More than 

100% of Median Income

$UPB(MILLIONS) $12,210 

Number of Units 103,502

16.48%

Affordable At More Than 100% But No More than 

120% of Median Income

$UPB(MILLIONS) $7,430 

Number of Units 52,115

8.30%

Affordable At More Than 120% of Median Income

$UPB(MILLIONS) $9,436 

Number of Units 46,230

7.36%

Tenant Rent Missing

$UPB(MILLIONS) $2,029 

Number of Units 10,566

1.68%

All Income Levels2

$UPB(MILLIONS) $29,731 $4,495 $60,837 

Number of Units 415,817 76,736 628,230

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

Table 3A

Distribution of Rental Units

Financed by Multifamily Mortgages Purchased by Fannie Mae

By Affordability of Rent1

For Calendar year 2018

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
©2019 Fannie Mae. Trademarks of Fannie Mae. 31

2018 Annual Housing Activities Report and Annual Mortgage Report

 Low-Income Units Very Low-Income Units Total Units Financed

Affordable At No More Than 30% of Median Income

 UPB ($ Millions) $543 $543 $543 

 Number of Units 3,900 3,900 3,900

 Portion of Low-Income, Very Low-Income, or Total Units Financed 3.88% 19.71% 1.89%

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

 UPB ($ Millions) $1,042 $1,042 $1,042 

 Number of Units 15,883 15,883 15,883

 Portion of Low-Income, Very Low-Income, or Total Units Financed 15.81% 80.29% 7.70%

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

 UPB ($ Millions) $1,825 $1,825 

 Number of Units 23,545 23,545

 Portion of Low-Income, Very Low-Income, or Total Units Financed 23.43% 11.41%

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

 UPB ($ Millions) $6,408 $6,408 

 Number of Units 57,164 57,164

 Portion of Low-Income, Very Low-Income, or Total Units Financed 56.88% 27.70%

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

 UPB ($ Millions) $7,659 

 Number of Units 47,395

 Portion of Low-Income, Very Low-Income, or Total Units Financed 22.97%

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

 UPB ($ Millions) $5,380 

 Number of Units 25,647

 Portion of Low-Income, Very Low-Income, or Total Units Financed 12.43%

Affordable At More Than 120% of Median Income

 UPB ($ Millions) $7,862 

 Number of Units 27,726

 Portion of Low-Income, Very Low-Income, or Total Units Financed 13.44%

Tenant Rent Missing

 UPB ($ Millions) $734 

 Number of Units 5,102

 Portion of Low-Income, Very Low-Income, or Total Units Financed 2.47%

All Income Levels2

 UPB ($ Millions) $9,818 $1,586 $31,452 

 Number of Units 100,492 19,783 206,362

 Portion of Low-Income, Very Low-Income, 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 Fannie Mae's Purchases of Mortgages on 

Single-Family Rental Properties By Affordability of Rent1

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 32

2018 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) $2,842 $3,332 $15,037 $13,464 $34,675 $34,675 

 Number of Mortgages 19,692 13,636 86,930 47,007 167,265 167,265

 Percentage of Eligible 11.77% 8.15% 51.97% 28.10% 100.00% 100.00%

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

 $UPB(Millions) $1,793 $0 $6,363 $0 $8,155 $19,532 

 Number of Mortgages 11,069 0 31,030 0 42,099 80,647

 Percentage of Eligible 13.73% 0.00% 38.48% 0.00% 52.20% 100.00%

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

 $UPB(Millions) $1,436 $0 $0 $0 $1,436 $26,028 

 Number of Mortgages 9,958 0 0 0 9,958 134,986

 Percentage of Eligible 7.38% 0.00% 0.00% 0.00% 7.38% 100.00%

Tract Income >= 100% of Area Median1

 $UPB(Millions) $7,272 $0 $0 $0 $7,272 $176,461 

 Number of Mortgages 42,404 0 0 0 42,404 661,200

 Percentage of Eligible 6.41% 0.00% 0.00% 0.00% 6.41% 100.00%

Total

 $UPB(Millions) $13,343 $3,332 $21,399 $13,464 $51,539 $256,696 

 Number of Mortgages 83,123 13,636 117,960 47,007 261,726 1,044,098

 Percentage of Eligible 7.96% 1.31% 11.30% 4.50% 25.07% 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 2018

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
©2019 Fannie Mae. Trademarks of Fannie Mae. 33

2018 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) $188 $43 $216 $196 $811 $608 $1,419 

 Number of Mortgages 1,223 362 1,163 1,332 3,552 3,084 6,636

Portion of Qualifying or Total Mortgages Acquired 0.42% 0.52% 0.44% 0.68% 0.32% 0.48% 0.38%

Asian2

 $UPB(Millions) $3,452 $623 $4,505 $1,264 $21,006 $7,627 $28,633 

 Number of Mortgages 16,828 4,258 17,390 6,138 68,092 24,986 93,078

Portion of Qualifying or Total Mortgages Acquired 5.71% 6.09% 6.64% 3.13% 6.07% 3.89% 5.27%

Black or African American2

 $UPB(Millions) $2,769 $537 $3,712 $1,791 $10,471 $6,153 $16,624 

 Number of Mortgages 17,200 4,483 20,146 12,249 46,070 30,569 76,639

Portion of Qualifying or Total Mortgages Acquired 5.84% 6.41% 7.70% 6.24% 4.10% 4.76% 4.34%

Native Hawaiian or Other Pacific Islander2

 $UPB(Millions) $117 $18 $147 $103 $577 $493 $1,071 

 Number of Mortgages 631 139 644 525 2,082 1,754 3,836

Portion of Qualifying or Total Mortgages Acquired 0.21% 0.20% 0.25% 0.27% 0.19% 0.27% 0.22%

White - Hispanic or Latino3

 $UPB(Millions) $5,473 $1,094 $8,002 $3,048 $24,459 $12,696 $37,155 

 Number of Mortgages 32,822 8,576 40,597 18,513 102,451 55,800 158,251

Portion of Qualifying or Total Mortgages Acquired 11.14% 12.26% 15.51% 9.43% 9.13% 8.68% 8.97%

White - Non Hispanic or Latino

 $UPB(Millions) $29,924 $5,101 $27,613 $17,697 $177,527 $87,862 $265,388 

 Number of Mortgages 194,332 45,500 148,206 121,722 752,912 408,138 1,161,050

Portion of Qualifying or Total Mortgages Acquired 65.97% 65.04% 56.63% 62.03% 67.09% 63.50% 65.78%

Two or More Minority Races4

 $UPB(Millions) $55 $10 $86 $47 $308 $199 $507

 Number of Mortgages 292 76 359 268 1,096 787 1,883

Portion of Qualifying or Total Mortgages Acquired 0.10% 0.11% 0.14% 0.14% 0.10% 0.12% 0.11%

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

 $UPB(Millions) $343 $31 $854 $225 $5,316 $2,109 $7,426 

 Number of Mortgages 1,858 246 3,358 1,306 18,088 8,018 26,106

Portion of Qualifying or Total Mortgages Acquired 0.63% 0.35% 1.28% 0.67% 1.61% 1.25% 1.48%

Information not Provided by Borrower or Co-Borrower6

 $UPB(Millions) $4,497 $704 $5,765 $5,068 $30,288 $23,677 $53,965 

 Number of Mortgages 25,966 5,724 26,886 32,780 115,067 105,238 220,305

Portion of Qualifying or Total Mortgages Acquired 8.82% 8.18% 10.27% 16.70% 10.25% 16.37% 12.48%

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%

Data not Provided by Loan Seller

 $UPB(Millions) $641 $87 $640 $265 $3,399 $1,084 $4,484 

 Number of Mortgages 3,407 588 2,977 1,397 12,891 4,327 17,218

Portion of Qualifying or Total Mortgages Acquired 1.16% 0.84% 1.14% 0.71% 1.15% 0.67% 0.98%

Total

 $UPB(Millions) $47,460 $8,247 $51,539 $29,705 $274,163 $142,508 $416,672 

 Number of Mortgages 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

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

Table 5A

Distribution of Fannie Mae's Single-Family Owner-Occupied

Mortgage Purchases By Race of Borrower(s) on Loan Application1

For Calendar Year 2018

Table 5A continues on next page.
©2019 Fannie Mae. Trademarks of Fannie Mae. 34

2018 Annual Housing Activities Report and Annual Mortgage Report

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.

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." 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.

Table 5A

Distribution of Fannie Mae's Single-Family Owner-Occupied

Mortgage Purchases By Race of Borrower(s) on Loan Application1

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 35

2018 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) $5,837 $1,198 $8,200 $3,474 $22,475 $12,698 $35,173 

 Number of Mortgages 35,055 9,414 42,097 21,215 96,921 57,414 154,335

Portion of Qualifying or Total Mortgages Acquired 11.90% 13.46% 16.08% 10.81% 8.64% 8.93% 8.74%

Borrower and Co-Borrower are not Hispanic or Latino:

 $UPB(Millions) $35,430 $6,126 $35,285 $20,605 $207,770 $101,494 $309,264 

 Number of Mortgages 223,428 53,020 181,955 138,578 857,279 460,316 1,317,595

Portion of Qualifying or Total Mortgages Acquired 75.85% 75.79% 69.52% 70.62% 76.39% 71.62% 74.65%

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

 $UPB(Millions) $361 $29 $901 $237 $5,675 $2,640 $8,315 

 Number of Mortgages 1,993 223 3,767 1,374 20,130 10,089 30,219

Portion of Qualifying or Total Mortgages Acquired 0.68% 0.32% 1.44% 0.70% 1.79% 1.57% 1.71%

Information not Provided by Borrower or Co-Borrower:3

 $UPB(Millions) $5,190 $808 $6,527 $5,093 $35,039 $24,563 $59,602 

 Number of Mortgages 30,632 6,690 30,929 33,402 135,487 110,112 245,599

Portion of Qualifying or Total Mortgages Acquired 10.40% 9.56% 11.82% 17.02% 12.07% 17.13% 13.91%

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%

Data Not Provided by Loan Seller:

 $UPB(Millions) $641 $87 $625 $295 $3,204 $1,113 $4,317 

 Number of Mortgages 3,451 605 2,978 1,661 12,484 4,770 17,254

Portion of Qualifying or Total Mortgages Acquired 1.17% 0.86% 1.14% 0.85% 1.11% 0.74% 0.98%

Total:

 $UPB(Millions) $47,460 $8,247 $51,539 $29,705 $274,163 $142,508 $416,672 

 Number of Mortgages 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

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

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 Fannie Mae's Single-Family Owner-Occupied Mortgage

Purchases By Ethnicity of Borrower(s) on Loan Application1

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 36

2018 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) $17,948 $3,221 $17,685 $9,241 $81,466 $39,405 $120,871 

Number of Mortgages 111,702 26,948 92,048 60,810 344,049 179,305 523,354

Portion of Qualifying or Total Mortgages Acquired 37.92% 38.52% 35.17% 30.99% 30.66% 27.90% 29.65%

All Female: 

$UPB(Millions) $17,184 $3,611 $14,692 $10,298 $54,185 $29,665 $83,851 

Number of Mortgages 111,319 31,674 82,533 70,751 255,012 150,116 405,128

Portion of Qualifying or Total Mortgages Acquired 37.79% 45.28% 31.53% 36.06% 22.72% 23.36% 22.95%

Male and Female: 

$UPB(Millions) $8,408 $847 $14,091 $6,195 $110,756 $55,042 $165,798 

Number of Mortgages 48,760 6,743 63,271 38,867 416,178 230,182 646,360

Portion of Qualifying or Total Mortgages Acquired 16.55% 9.64% 24.17% 19.81% 37.08% 35.81% 36.62%

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) $3,040 $469 $4,013 $3,470 $20,868 $15,908 $36,776 

Number of Mortgages 18,296 3,972 19,295 23,323 82,074 73,696 155,770

Portion of Qualifying or Total Mortgages Acquired 6.21% 5.68% 7.37% 11.89% 7.31% 11.47% 8.83%

Missing:2

$UPB(Millions) $880 $99 $1,059 $500 $6,889 $2,488 $9,377 

Number of Mortgages 4,482 615 4,579 2,479 24,988 9,402 34,390

Portion of Qualifying or Total Mortgages Acquired 1.52% 0.88% 1.75% 1.26% 2.23% 1.46% 1.95%

Total: 

$UPB(Millions) $47,460 $8,247 $51,539 $29,705 $274,163 $142,508 $416,672 

Number of Mortgages 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

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 Fannie Mae's Single-Family Owner-Occupied

Mortgage Purchases By Gender of Borrower(s)1

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 37

2018 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% 67,496 16,367 21,285 43,993 264,755 145,425 410,180

10% <= Minority < 20% 70,280 15,781 34,695 41,655 285,181 145,419 430,600

20% <= Minority < 30% 45,053 10,338 31,764 27,459 179,325 94,931 274,256

30% <= Minority < 50% 53,624 12,424 68,868 34,569 205,991 117,087 323,078

50% <= Minority < 80% 39,898 10,015 66,191 29,498 132,145 89,149 221,294

80% <= Minority <= 100% 18,205 5,026 38,871 19,054 54,749 50,640 105,389

Tract Missing / Unable to Classify 3 1 52 2 155 50 205

Total: 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

Table 7

Distribution of Fannie Mae's Single-Family Owner-Occupied

Mortgage Purchases By Minority Concentration of Census Tract

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 38

2018 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Minority < 10% 16,838 3,465 26,185

10% <= Minority < 20% 50,603 6,416 81,357

20% <= Minority < 30% 51,858 6,777 87,455

30% <= Minority < 50% 93,113 13,022 160,602

50% <= Minority < 80% 121,998 21,371 172,246

80% <= Minority <= 100% 81,407 25,685 100,385

Tract Missing / Unable to Classify 0 0 0

Total: 415,817 76,736 628,230

Table 8A

Distribution of Fannie Mae's Multifamily Mortgage Purchases

By Minority Concentration of Census Tract

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 39

2018 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Minority < 10% 12,789 3,185 21,894

10% <= Minority < 20% 17,865 3,465 36,615

20% <= Minority < 30% 13,561 2,479 29,237

30% <= Minority < 50% 18,912 3,482 42,164

50% <= Minority < 80% 20,112 3,662 41,396

80% <= Minority <= 100% 17,244 3,509 34,987

Tract Missing / Unable to Classify 9 1 69

Total: 100,492 19,783 206,362

Table 8B

Distribution of Rental Units Financed by Fannie Mae's Purchases of Mortgages

on Single-Family Rental Properties by Minority Concentration of Census Tract

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 40

2018 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% 16,367 16,367 3,686 13,470 16,641 13,544 30,185

 10% <= Minority < 30% 26,119 26,119 9,980 20,480 26,369 20,565 46,934

 30% <= Minority < 50% 12,424 12,424 10,051 10,419 12,537 10,456 22,993

 50% <= Minority < 80% 10,015 10,015 9,018 9,302 10,127 9,350 19,477

 80% <= Minority <= 100% 5,026 5,026 4,865 6,183 5,072 6,211 11,283

 Tract Missing / Unable to Classify 1 1 1 1 1 1 2

 Subtotal 69,952 69,952 37,601 59,855 70,747 60,127 130,874

50% < Income <=60% of MSA Median Income

 Minority < 10% 15,275 0 2,693 9,327 15,603 9,378 24,981

 10% <= Minority < 30% 25,759 0 8,487 14,363 26,029 14,416 40,445

 30% <= Minority < 50% 11,687 0 8,677 7,138 11,835 7,167 19,002

 50% <= Minority < 80% 8,920 0 7,651 6,167 9,024 6,190 15,214

 80% <= Minority <= 100% 3,958 0 3,737 3,871 4,001 3,885 7,886

 Tract Missing / Unable to Classify 1 0 1 1 1 1 2

 Subtotal 65,600 0 31,246 40,867 66,493 41,037 107,530

60% < Income <=80% of MSA Median Income

 Minority < 10% 35,854 0 5,634 21,196 36,846 21,356 58,202

 10% <= Minority < 30% 63,455 0 18,889 34,271 64,499 34,419 98,918

 30% <= Minority < 50% 29,513 0 20,170 17,012 29,990 17,095 47,085

 50% <= Minority < 80% 20,963 0 17,009 14,029 21,329 14,088 35,417

 80% <= Minority <= 100% 9,221 0 8,563 9,000 9,350 9,036 18,386

 Tract Missing / Unable to Classify 1 0 1 0 1 0 1

 Subtotal 159,007 0 70,266 95,508 162,015 95,994 258,009

80% < Income <=100% of MSA Median Income

 Minority < 10% 0 0 4,986 0 35,378 20,825 56,203

 10% <= Minority < 30% 0 0 17,031 0 64,137 33,792 97,929

 30% <= Minority < 50% 0 0 17,702 0 29,601 16,909 46,510

 50% <= Minority < 80% 0 0 14,556 0 20,039 13,389 33,428

 80% <= Minority <= 100% 0 0 7,692 0 8,733 8,547 17,280

 Tract Missing / Unable to Classify 0 0 3 0 3 1 4

 Subtotal 0 0 61,970 0 157,891 93,463 251,354

100% < Income <=120% of MSA Median Income

 Minority < 10% 0 0 1,367 0 30,981 18,091 49,072

 10% <= Minority < 30% 0 0 3,974 0 55,256 30,199 85,455

 30% <= Minority < 50% 0 0 3,791 0 24,437 14,820 39,257

 50% <= Minority < 80% 0 0 5,423 0 15,940 11,452 27,392

 80% <= Minority <= 100% 0 0 4,156 0 6,890 6,644 13,534

 Tract Missing / Unable to Classify 0 0 4 0 4 1 5

 Subtotal 0 0 18,715 0 133,508 81,207 214,715

120% MSA Median Income < Income

 Minority < 10% 0 0 2,919 0 129,304 62,097 191,401

 10% <= Minority < 30% 0 0 8,098 0 228,215 106,910 335,125

 30% <= Minority < 50% 0 0 8,477 0 97,591 50,633 148,224

 50% <= Minority < 80% 0 0 12,534 0 55,686 34,674 90,360

 80% <= Minority <= 100% 0 0 9,858 0 20,703 16,310 37,013

 Tract Missing / Unable to Classify 0 0 42 0 78 21 99

 Subtotal 0 0 41,928 0 531,577 270,645 802,222

Borrower Income Missing

 Minority < 10% 0 0 0 0 2 134 136

 10% <= Minority < 30% 0 0 0 0 1 49 50

 30% <= Minority < 50% 0 0 0 0 0 7 7

 50% <= Minority < 80% 0 0 0 0 0 6 6

 80% <= Minority <= 100% 0 0 0 0 0 7 7

 Tract Missing / Unable to Classify 0 0 0 0 67 25 92

 Subtotal 0 0 0 0 70 228 298

Total: 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

Table 9

Distribution of Fannie Mae's Single-Family Owner-Occupied Mortgage 

Purchases Minority Percentage of Census Tract by Income of Borrower

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 41

2018 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 3,246 824 1,536 2,007 13,579 6,892 20,471

Alaska 458 105 302 461 1,546 1,096 2,642

Arizona 10,523 2,247 9,581 7,101 44,435 22,002 66,437

Arkansas 1,579 444 2,257 1,033 6,848 3,892 10,740

California 10,347 1,305 24,538 24,220 92,417 111,849 204,266

Colorado 9,469 1,820 7,995 9,944 34,207 24,646 58,853

Connecticut 4,421 1,176 2,075 1,558 10,957 4,291 15,248

Delaware 1,315 392 772 759 4,846 1,989 6,835

District of Columbia 839 194 1,078 572 2,354 1,275 3,629

Florida 19,415 3,851 35,221 11,207 96,620 37,765 134,385

Georgia 8,539 1,905 8,357 5,426 38,498 18,487 56,985

Hawaii 559 73 671 697 3,067 2,385 5,452

Idaho 3,328 755 1,752 1,721 12,470 5,094 17,564

Illinois 14,424 4,218 8,017 6,973 41,637 21,978 63,615

Indiana 6,406 1,751 3,011 3,471 21,045 10,073 31,118

Iowa 5,202 1,699 1,762 1,974 12,657 5,420 18,077

Kansas 2,632 728 1,035 1,239 7,972 3,664 11,636

Kentucky 4,126 1,196 3,615 1,696 11,570 5,205 16,775

Louisiana 2,235 512 3,664 1,833 10,045 7,001 17,046

Maine 813 193 352 714 3,038 1,875 4,913

Maryland 7,992 2,288 5,889 4,879 20,916 11,334 32,250

Massachusetts 6,817 1,401 4,131 5,445 19,862 14,364 34,226

Michigan 10,711 2,896 5,308 8,028 35,804 23,914 59,718

Minnesota 12,456 3,743 8,447 5,470 30,465 13,837 44,302

Mississippi 937 189 695 795 4,928 3,529 8,457

Missouri 7,225 2,182 7,739 4,159 22,339 11,926 34,265

Montana 1,218 251 567 810 4,727 2,680 7,407

Nebraska 3,627 1,076 1,524 1,408 9,478 4,003 13,481

Nevada 4,482 760 4,431 3,540 20,278 11,000 31,278

New Hampshire 1,772 410 865 1,131 5,803 3,045 8,848

New Jersey 6,193 1,263 3,599 4,063 25,823 15,701 41,524

New Mexico 1,799 459 1,703 924 7,140 2,979 10,119

New York 8,844 1,634 5,569 5,201 34,432 19,853 54,285

North Carolina 9,900 2,442 10,393 4,870 41,454 15,425 56,879

North Dakota 591 149 173 419 1,910 1,194 3,104

Ohio 12,174 3,391 5,360 5,489 35,270 15,316 50,586

Oklahoma 2,276 593 3,420 1,269 9,095 4,523 13,618

Oregon 3,551 483 3,422 3,918 19,187 13,108 32,295

Pennsylvania 11,535 3,135 6,018 5,691 38,189 16,335 54,524

Rhode Island 1,041 170 481 629 3,586 1,837 5,423

South Carolina 5,226 1,309 7,453 2,606 21,970 8,278 30,248

South Dakota 1,439 412 470 538 3,789 1,535 5,324

Tennessee 5,333 1,217 3,493 3,807 22,459 11,503 33,962

Texas 17,014 2,828 26,528 12,936 90,302 52,136 142,438

Utah 6,412 1,189 3,622 4,043 19,957 10,966 30,923

Vermont 596 138 182 396 2,018 958 2,976

Virginia 10,589 2,841 8,091 5,505 30,205 14,408 44,613

Washington 10,207 2,027 9,241 8,538 36,118 24,278 60,396

West Virginia 627 161 544 508 2,690 1,799 4,489

Wisconsin 11,320 3,317 4,222 4,021 28,468 11,651 40,119

Wyoming 737 206 253 520 2,369 1,342 3,711

Guam 0 0 25 3 38 18 56

Puerto Rico 39 3 225 63 1,272 1,000 2,272

Virgin Islands 3 1 52 2 88 25 113

Other Territories 0 0 0 0 0 0 0

Unable to Geocode 0 0 0 0 64 22 86

Total 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

Table 10A

Distribution of Fannie Mae's Single-Family Owner-Occupied Mortgage Purchases

By State and Territory

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 42

2018 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Alabama 6,713 930 8,587

Alaska 132 56 145

Arizona 19,009 1,657 27,590

Arkansas 3,916 802 4,513

California 11,088 3,160 68,723

Colorado 7,532 920 13,194

Connecticut 1,746 604 3,098

Delaware 850 1 873

District of Columbia 686 627 1,592

Florida 16,743 1,062 47,570

Georgia 28,905 6,785 38,225

Hawaii 81 32 206

Idaho 730 52 1,289

Illinois 8,711 3,078 14,693

Indiana 12,931 1,582 15,986

Iowa 1,452 629 2,080

Kansas 6,160 2,042 6,311

Kentucky 5,445 1,814 6,301

Louisiana 4,686 1,268 5,025

Maine 10 0 25

Maryland 22,173 4,264 24,589

Massachusetts 2,205 813 4,486

Michigan 12,443 1,994 16,109

Minnesota 5,654 985 6,996

Mississippi 3,488 168 4,350

Missouri 8,419 3,169 8,974

Montana 260 84 328

Nebraska 1,828 757 2,040

Nevada 5,575 469 9,227

New Hampshire 1,642 29 2,695

New Jersey 2,562 1,054 5,369

New Mexico 4,277 667 5,110

New York 14,718 6,508 22,494

North Carolina 26,129 4,907 32,277

North Dakota 11 0 12

Ohio 17,263 3,992 20,542

Oklahoma 4,057 1,281 4,107

Oregon 3,641 185 7,133

Pennsylvania 6,396 1,907 10,032

Rhode Island 1,155 282 1,475

South Carolina 6,958 1,102 8,459

South Dakota 191 120 192

Tennessee 11,177 1,882 14,677

Texas 86,322 9,665 108,625

Utah 6,760 390 8,471

Vermont 6 0 60

Virginia 11,979 1,818 14,824

Washington 8,344 532 14,126

West Virginia 705 307 880

Wisconsin 1,647 115 3,236

Wyoming 306 189 309

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 415,817 76,736 628,230

Table 10B

Distribution of Fannie Mae's

Multifamily Mortgage Purchases by State And Territory

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 43

2018 Annual Housing Activities Report and Annual Mortgage Report

Qualifying Low- Qualifying Very Low- Total Units Financed

Income Units Income Units

Alabama 1,033 242 1,547

Alaska 385 64 494

Arizona 2,891 427 6,448

Arkansas 609 86 890

California 8,239 1,117 38,314

Colorado 2,530 329 6,532

Connecticut 1,740 513 2,257

Delaware 365 80 534

District of Columbia 360 61 725

Florida 3,623 598 12,668

Georgia 2,824 374 5,582

Hawaii 155 20 782

Idaho 1,288 137 2,143

Illinois 4,661 1,093 7,778

Indiana 1,884 428 2,760

Iowa 765 255 901

Kansas 772 163 980

Kentucky 845 224 1,103

Louisiana 1,015 121 2,032

Maine 374 60 554

Maryland 2,104 360 3,078

Massachusetts 4,579 974 6,589

Michigan 2,941 576 4,153

Minnesota 2,228 464 2,950

Mississippi 185 24 425

Missouri 3,075 1,155 3,734

Montana 468 71 749

Nebraska 650 171 802

Nevada 1,582 241 3,950

New Hampshire 628 119 811

New Jersey 4,313 498 7,271

New Mexico 624 113 1,238

New York 4,534 1,166 11,432

North Carolina 2,975 485 5,239

North Dakota 90 35 116

Ohio 4,626 1,490 5,596

Oklahoma 1,073 147 1,534

Oregon 1,501 118 4,460

Pennsylvania 4,098 1,105 5,454

Rhode Island 1,015 127 1,349

South Carolina 963 151 2,051

South Dakota 234 103 321

Tennessee 1,919 258 3,697

Texas 5,797 688 14,866

Utah 2,018 382 3,777

Vermont 155 22 226

Virginia 2,480 379 3,862

Washington 3,787 656 7,157

West Virginia 112 30 190

Wisconsin 3,002 1,186 3,359

Wyoming 361 93 443

Guam 1 0 2

Puerto Rico 7 3 388

Virgin Islands 9 1 62

Other Territories 0 0 0

Unable to Geocode 0 0 7

Total 100,492 19,783 206,362

Table 10C

Distribution of Rental Units Financed by Fannie Mae's Purchases of 

Mortgages on Single-Family Rental Properties by State And Territory

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 44

2018 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) $3,651 $932 $2,642 $11,681 $19,661 $43,799 $63,461 

 Number of Mortgages 28,700 9,494 18,027 85,109 98,954 223,264 322,218

Portion of Total 9.74% 13.57% 6.89% 43.37% 8.82% 34.74% 18.26%

60% < LTV <= 80%

 $UPB(Millions) $14,595 $2,652 $15,395 $16,290 $108,400 $87,122 $195,522 

 Number of Mortgages 88,702 22,044 76,011 100,253 417,712 371,590 789,302

Portion of Total 30.11% 31.51% 29.04% 51.09% 37.22% 57.82% 44.72%

80% < LTV <= 90%

 $UPB(Millions) $6,353 $1,025 $7,766 $1,174 $48,625 $8,423 $57,048 

 Number of Mortgages 37,004 8,379 35,074 7,268 184,238 34,121 218,359

Portion of Total 12.56% 11.98% 13.40% 3.70% 16.42% 5.31% 12.37%

90% < LTV <= 95%

 $UPB(Millions) $9,580 $1,426 $12,864 $422 $64,053 $2,789 $66,842 

 Number of Mortgages 58,189 12,084 61,997 2,666 253,373 11,625 264,998

Portion of Total 19.75% 17.27% 23.69% 1.36% 22.58% 1.81% 15.01%

95% < LTV <= 100%

 $UPB(Millions) $13,282 $2,213 $12,871 $59 $33,370 $184 $33,554 

 Number of Mortgages 81,964 17,951 70,617 397 167,590 959 168,549

Portion of Total 27.83% 25.66% 26.98% 0.20% 14.93% 0.15% 9.55%

100% < LTV

 $UPB(Millions) $0 $0 $0 $78 $54 $190 $243

 Number of Mortgages 0 0 0 537 434 1,124 1,558

Portion of Total 0.00% 0.00% 0.00% 0.27% 0.04% 0.17% 0.09%

Missing LTV

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

 Number of Mortgages 0 0 0 0 0 18 18

Portion of Total 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Total

 $UPB(Millions) $47,460 $8,247 $51,539 $29,705 $274,163 $142,508 $416,672 

 Number of Mortgages 294,559 69,952 261,726 196,230 1,122,301 642,701 1,765,002

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 Fannie Mae's Single-Family Owner-Occupied

Mortgage Purchases1By LTV Category

For Calendar Year 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 45

2018 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) $6,020 $2,227 $0 $8,247 

 Number of Mortgages 50,363 19,589 0 69,952

 Portion of Total Mortgages Acquired 9.53% 3.80% 6.70%

Income >50% But <= 60% of AMI

 $UPB(Millions) $7,076 $2,911 $0 $9,987 

 Number of Mortgages 46,224 19,376 0 65,600

 Portion of Total Mortgages Acquired 8.74% 3.76% 6.28%

Income >60% But <= 80% of AMI

 $UPB(Millions) $19,137 $10,089 $0 $29,226 

 Number of Mortgages 103,471 55,536 0 159,007

 Portion of Total Mortgages Acquired 19.57% 10.78% 15.23%

Income >80% But <= 100% of AMI

 $UPB(Millions) $19,689 $14,124 $0 $33,813 

 Number of Mortgages 88,771 64,996 0 153,767

 Portion of Total Mortgages Acquired 16.79% 12.61% 14.73%

Income >100% But <= 120% of AMI

 $UPB(Millions) $16,511 $15,394 $0 $31,905 

 Number of Mortgages 65,586 62,928 0 128,514

 Portion of Total Mortgages Acquired 12.40% 12.21% 12.31%

Income >120% of AMI

 $UPB(Millions) $54,010 $89,497 $0 $143,506 

 Number of Mortgages 174,294 292,905 0 467,199

 Portion of Total Mortgages Acquired 32.96% 56.83% 44.75%

Missing

 $UPB(Millions) $4 $8 $0 $12 

 Number of Mortgages 17 42 0 59

 Portion of Total Mortgages Acquired 0.00% 0.01% 0.01%

All Income Levels1

 $UPB(Millions) $122,447 $134,249 $0 $256,696 

 Number of Mortgages 528,726 515,372 0 1,044,098

 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 2018
©2019 Fannie Mae. Trademarks of Fannie Mae. 46

2018 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) $28,573 $14,257 $0 $42,830 

 Number of Mortgages 142,307 67,057 0 209,364

 Percentage of Total 26.92% 13.01% 20.05%

Non-Qualifying Mortgages

 $UPB(Millions) $93,873 $119,992 $0 $213,865 

 Number of Mortgages 386,419 448,315 0 834,734

 Percentage of Total 73.08% 86.99% 79.95%

Total Mortgages

 $UPB(Millions) $122,447 $134,249 $0 $256,696 

 Number of Mortgages 528,726 515,372 0 1,044,098

 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 2018